Market: KOSPI (000660)
Brokerage : DS Investment & Securities
Analyst : Surim Lee
Investment Rating : BUY (Maintained)
Target Price : 970,000 KRW (Raised)
Core Momentum : Strong server memory demand and tightening supply are expected to sustain pricing power across HBM and conventional memory, while rising HBM3E prices support continued margin expansion and earnings growth.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 970,000 KRW (Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 194.753 trillion KRW, Operating Profit 124.10 trillion KRW, Operating Margin 63.7%
- EPS: 138,044 KRW (2026F)
- Valuation Multiples: P/E 6.1x, P/B 3.0x, EV/EBITDA 3.7x (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Review: Revenue reached 32.8 trillion KRW (+34% QoQ) and operating profit hit 19.2 trillion KRW (+68% QoQ, OPM 58%), breaking record highs. Estimated DRAM B/G +1%, ASP +24%; NAND B/G +11%, ASP +33%.
- LTA & HBM Competitiveness: Long-Term Agreements (LTAs) are evolving into stronger formats amid solid server memory demand. HBM4 mass production is underway per schedule, targeting yields comparable to HBM3E via MR-MUF technology.
- 1Q26 Preview: Operating profit is projected at 24.2 trillion KRW (+26% QoQ, OPM 62%). HBM3E prices are rising alongside tightening DDR5 supply and increasing ASIC client demand, while NAND ASP is expected to rise 20% QoQ.
- Mid-to-Long-Term Strategy: Establishment of a US-based AI corporation aims to secure a partnership role within the AI data center ecosystem, with ongoing evaluation of shareholder return policies supported by earnings improvements.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as a company capturing stellar earnings growth and margin expansion, propelled by strong server memory demand and rising pricing power across HBM and legacy memory products. The analyst emphasizes near-term margin leverage and earnings growth driven by ASP increases.
To verify this investment thesis, one should monitor whether 1Q26 operating profit meets the projected 24 trillion KRW level (OPM 62%), if HBM3E price increases and HBM4 mass production proceed smoothly to safeguard profitability, and how the US AI entity unfolds its strategic role. These metrics can be tracked through upcoming quarterly earnings releases, official IR materials, and regulatory filings via DART/KRX.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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