Market: KOSPI (000660)
Brokerage : Kiwoom Securities
Analyst : Yuak Park
Investment Rating : BUY
Target Price : 730,000 KRW
Core Momentum : Continued commodity DRAM price increases and an emerging NAND recovery are expected to drive consecutive earnings beats in 4Q25 and 1Q26, with customer price absorption creating additional upside potential for memory pricing.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 730,000 KRW (Maintained)
- Investment Rating: BUY (Maintained)
- 2025F / 2026F Financial Outlook: 2025 Revenue 94.06 trillion KRW, Operating Profit 44.26 trillion KRW / 2026 Revenue 147.59 trillion KRW, Operating Profit 85.46 trillion KRW
- EPS: 57,779 KRW (2025F), 96,635 KRW (2026F)
- Valuation Multiples: PER 9.4x, PBR 3.4x, EV/EBITDA 2.5x, ROE 44.3% (2025F) / PER 5.6x, PBR 2.1x, EV/EBITDA 1.1x, ROE 46.7% (2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Preview: Revenue is expected to reach 30.3 trillion KRW (+24% QoQ) and operating profit 16.2 trillion KRW (+43% QoQ), beating estimates and market consensus (FnGuide OP of 14.6 trillion KRW). HBM3e shipments are projected to increase by +9% QoQ to 4.1 billion Gb, with divisional operating profits estimated at 15.3 trillion KRW for DRAM and 0.9 trillion KRW for NAND.
- 1Q26 Preview: Revenue is projected at 31.5 trillion KRW (+4% QoQ) and operating profit at 17.9 trillion KRW (+10% QoQ), exceeding market consensus (16.3 trillion KRW). Profitability improvements are expected from price hikes in generic DRAM (+22% QoQ) and NAND (+5% QoQ), with divisional operating profits estimated at 17.0 trillion KRW for DRAM and 1.0 trillion KRW for NAND.
- Industry & Pricing Dynamics: Customer price absorption in PCs and servers mitigates memory cost burdens, increasing the likelihood of further price upside. NAND industry recovery is also visible, heightening prospects for price increases exceeding 1H26 expectations.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as poised to deliver consecutive earnings beats in the fourth quarter and early next year, significantly outperforming market consensus. The analyst emphasizes ongoing memory price appreciation and recovery within the NAND sector.
To verify this investment thesis, one should track whether actual 4Q25 and 1Q26 results meet projections (operating profits of 16.2 trillion KRW and 17.9 trillion KRW, respectively), if generic DRAM and NAND price uptrends persist, and whether upward revisions in memory price forecasts continue to drive stock momentum despite concerns over potential set-demand slowdowns. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
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