Market: KOSPI (000660)
Brokerage : Daishin Securities
Analyst : Hyungkeun Ryu (RA: Jiwon Seo)
Investment Rating : BUY (Maintained)
Target Price : 1,250,000 KRW (Raised)
Core Momentum : Disciplined Capex is expected to prevent excessive capacity expansion during the memory super-cycle, while multi-year LTAs and prepayment-based contracts improve supply stability and cash-flow visibility, supporting stronger shareholder returns and corporate value.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,250,000 KRW (Based on Target P/B 4.0x, applying a 15% discount to Micron Technology’s 12m Fwd P/B on 2026F BPS, Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 205.34 trillion KRW, Operating Profit 142.01 trillion KRW, Net Income 110.19 trillion KRW
- EPS: 151,350 KRW (2026F)
- Valuation Multiples: PER 3.4x, PBR 2.8x, ROE 63.4% (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- Key Management Message: Amid a memory super-cycle, 1) maintaining strict Capex discipline to avoid excessive expansion, and 2) advancing sales policy changes such as Multi-Year LTAs, deposits, and prepayments to enhance supply stability and corporate value.
- Capex Outlook: 2026 Capex is projected to rise to the upper 30 trillion KRW range, but remains controlled at around 20% in capital intensity, making a sudden surge unlikely as investments center strictly on essential infrastructure.
- Shareholder Returns & HBM: Leveraging unprecedented supply-demand imbalances to push forward with policies strengthening shareholder returns and securing growth capital, with potential ADR issuance via treasury share buybacks. HBM4 shipments are proceeding smoothly on schedule despite market concerns, reinforcing confidence in maintaining top-tier market share.
- Industry Context: Reflecting a period where various efforts to restructure business operations overlap with ongoing initiatives for shareholder returns and enterprise value enhancement during the memory super-cycle.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as a company that maintains Capex discipline and pursues sales policy changes such as Multi-Year LTAs during the memory super-cycle, thereby establishing opportunities for corporate value enhancement and strengthened shareholder returns. The analyst highlights the management’s efforts to secure supply stability and drive value-up initiatives.
To verify this investment thesis, one should track whether 2026 Capex execution remains within controlled thresholds, if Multi-Year LTAs and deposits effectively contribute to supply stability and corporate value, and how HBM4 shipments and shareholder return policies unfold. These indicators can be monitored through upcoming quarterly earnings reports and regulatory disclosures via DART.
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