Market: KOSPI (000660)
Brokerage : Daishin Securities
Analyst : Hyeongkeun Ryu (RA: Jiwon Seo)
Investment Rating : BUY (Maintained)
Target Price : 840,000 KRW (Raised)
Core Momentum : HBM4 commercialization and severe commodity memory supply shortages are expected to drive record earnings through the combined strength of HBM and conventional DRAM, while ADR and SPC initiatives support stronger shareholder returns and reduced cycle volatility.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 840,000 KRW (Based on Target P/B 3.2x, Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 165.95 trillion KRW, Operating Profit 100.78 trillion KRW, Net Income 78.09 trillion KRW
- EPS: 107,264 KRW (2026F)
- Valuation Multiples: PER 4.8x, PBR 2.5x, ROE 51.8% (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Preview: Despite disciplined sales growth and bonus provision expenses, 4Q25 operating profit is projected to reach 16.8 trillion KRW, beating market consensus, opening the doors to a historic 100 trillion KRW operating profit era by 2026.
- HBM Outlook: 2026 shipments are projected to grow 54% YoY to 19.3 billion Gb. Although quality issues regarding HBM4 12-high have been raised, they are deemed solvable, with product qualification expected within 1Q and mass supply starting in 2Q. Nvidia market share is projected to stay solid at 63%.
- Generic DRAM & NAND: Leveraging unprecedented supply shortages, aggressive pricing policies in 1Q will narrow the generic DRAM ASP gap with competitors, driving strong earnings via the “Twin Engine” effect. Solidigm leads the server QLC market, while headquarters NAND competitiveness improves centered on discrete components.
- Structural Shifts & Returns: Potential issuance of American Depositary Receipts (ADRs) to reinforce shareholder returns, targeted for materialization within 1Q. Establishment of an SPC to drive structural changes, optimize fundraising in the AI era, and curb cyclical volatility risks.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as entering a historic 100 trillion KRW operating profit era by 2026, driven by core technology leadership, the “Twin Engine” synergy of HBM and generic DRAM, and structural improvements in NAND. The analyst highlights proactive shareholder return initiatives and structural enhancements via SPC establishment.
To verify this investment thesis, one should track whether actual 4Q earnings beat expectations, if HBM4 12-high qualifications and 2Q shipments proceed on schedule, and how shareholder return measures such as ADR issuance and SPC establishment materialize. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
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