Market: KOSPI (000660)
Brokerage : Hana Securities
Analyst : Rok-Ho Kim (RA: Young-Gyu Kim)
Investment Rating : BUY (Maintained)
Target Price : 1,280,000 KRW (Raised)
Core Momentum : Strong data center demand is expected to sustain sharp DRAM and NAND price increases and exceptional cash generation, enabling earnings growth to translate into expanded dividends, treasury share cancellations, and broader corporate value-up initiatives.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,280,000 KRW (Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 202.81 trillion KRW, Operating Profit 134.35 trillion KRW, Net Income 110.56 trillion KRW
- EPS: 154,772 KRW (2026F)
- Valuation Multiples: P/E 5.6x, P/B 2.7x, EV/EBITDA 3.7x, ROE 65.3% (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Review: Revenue hit 32.8 trillion KRW (+66% YoY, +34% QoQ) and operating profit reached 19.2 trillion KRW (+137% YoY, +68% QoQ). DRAM shipments rose 1% with ASP up 24%, while NAND shipments increased 10% with ASP up 33%. DRAM OPM hit 69%, and NAND OPM approached 30%.
- Full-Year Forecast: 2026 revenue and operating profit are projected to skyrocket 109% and 185% YoY to 203 trillion KRW and 134 trillion KRW, respectively, fueled by sharp ASP jumps of 70% for DRAM and 62% for NAND.
- Capacity & Process: The ramp-up of the M15X fab will accelerate HBM4 supplies, while 1c-nanometer conversion will expand bit shipments from Q2-Q3. NAND will increase QLC supply through 321-layer process expansion to capture AI eSSD demand.
- Shareholder Returns: Approved regular and additional cash dividends along with the cancellation of 15.3 million treasury shares (approx. 2.1% of total shares). Actively evaluating corporate value-up initiatives including a potential US listing.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as an enterprise that has secured extraordinary pricing leverage and massive cash generation capabilities propelled by solid server demand. The perspective centers on how the company leverages favorable industry conditions to translate robust financial performance into tangible, proactive shareholder remuneration.
To verify this investment thesis, one should track whether the M15X ramp-up and 1c-nm migration proceed smoothly to drive HBM4 and bit shipment growth, if 321-layer NAND process deployment successfully captures high-capacity eSSD demand, and whether explosive earnings growth continues to trigger further value-enhancing shareholder policies. These indicators can be monitored through upcoming quarterly reports and regulatory disclosures.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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