Market: KOSPI (000660)
Brokerage : Daishin Securities
Analyst : Hyeongkeun Ryu (RA: Jiwon Seo)
Investment Rating : BUY (Maintained)
Target Price : 550,000 KRW (Raised)
Core Momentum : Intensifying DRAM procurement demand and disciplined capacity expansion are expected to sustain tight supply and pricing momentum, while leadership in HBM4, 1c DRAM, and server QLC eSSD strengthens SK hynix’s competitive position through 2026.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 550,000 KRW (Raised)
- Investment Rating: BUY (Maintained)
- 2025F / 2026F Financial Outlook: 2025 Revenue 90.64 trillion KRW, Operating Profit 41.06 trillion KRW / 2026 Revenue 118.83 trillion KRW, Operating Profit 62.04 trillion KRW
- EPS: 46,026 KRW (2025F), 64,855 KRW (2026F)
- Valuation Multiples: PER 4.3x, PBR 3.2x, ROE 37.2% (2025F) / PER 3.1x, PBR 2.2x, ROE 36.5% (2026F)
🚀 2. [Market Opportunities & Business Outlook]
- Demand Dynamics (Sustained FOMO): Fears of failing to secure DRAM on time are intensifying demand FOMO. Some server clients have begun discussions regarding 2027 volumes, and set makers are absorbing price hikes, driving expectations for a 15–20% QoQ increase in 4Q25 generic DRAM prices.
- Supply Dynamics (Capex Discipline): Overproduction risks are limited. 2026 facility investments focus on the DRAM 1c node with expanded EUV layers, requiring approximately 6 months for setup. Production constraints are further supported by factory environmental factors and potential regulatory/VEU policy shifts under the U.S. administration.
- Product Competitiveness: 1) HBM: Leading in HBM4 12-high product qualification, maintaining the #1 market share position through 2026, with full support for 10/11Gbps products and early yield stabilization. 2) Generic DRAM: Acceleration of the DRAM 1c ramp-up targeting high-80s initial yields, strengthening profitability via timely responses to server demand. 3) NAND: Subsidiary Solidigm leads in server eSSD (QLC) product deployment, poised to capture early QLC benefits.
📝 Editor’s Comment (Perspective)
The analyst highlights that SK hynix is positioned to capitalize on a flawless upcycle, backed by strong technology leadership and structural competitive advantages, prompting an upward revision of the target price to 550,000 KRW.
To verify this investment thesis, one should track whether 4Q25 generic DRAM price hikes (15–20%) materialize, if technological edges in DRAM 1c and HBM4 12-high are successfully maintained, and whether the 2026 operating profit forecast of 62.0 trillion KRW is achieved amidst supply constraints. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
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