Market: KOSPI (000660)
Brokerage : SK Securities
Analyst : Donghee Han, Jimin Park
Investment Rating : Buy (Maintained)
Target Price : KRW 480,000 (Raised)
Core Momentum : Expanding AI infrastructure is broadening structural memory demand from HBM into server DRAM and high-capacity QLC SSDs, while disciplined industry Capex and strong HBM4 manufacturing competitiveness support a prolonged supplier-led upcycle and sustained earnings growth.
📊 1. [Valuation & Key Financial Metrics]
- Target Price & Rating: Raised the target price to KRW 480,000, shifting the base BPS to 2026 and applying a Target P/B of 2.3x (representing peak levels within the AI cycle), while maintaining a Buy rating.
- Earnings Outlook: Operating profit for 2026 is projected to reach KRW 56.151 trillion, representing a continuous high growth of +43% year-over-year.
- Key Financial Metrics (2025E / 2026E):
- Revenue: KRW 88.084 trillion (2025E) / KRW 107.901 trillion (2026E)
- Operating Profit: KRW 39.385 trillion (2025E) / KRW 56.151 trillion (2026E)
- EPS: KRW 46,126 (2025E) / KRW 63,559 (2026E)
- P/E: 7.5x (2025E) / 5.5x (2026E)
- P/B: 2.4x (2025E) / 1.7x (2026E)
- ROE: 37.5% (2025E) / 36.2% (2026E)
🚀 2. [Market Opportunities & Business Outlook]
- Broadening AI Memory Demand Base: As AI server investments expand into general servers for service infrastructure building, the structural growth of memory is extending beyond HBM alone to server DRAM and SSDs.
- Differentiation in the SSD Sector: Driven by accumulating data surges, the increasing importance of Hot/Warm data tiers, and prolonged HDD supply shortages, structural demand for high-capacity QLC-based SSDs is expected to expand.
- Prolonged Supplier-Led Upcycle & HBM4 Competitiveness: Continuous industry CapEx discipline and capacity allocation toward HBM will lead to a structural decline in inventories, outpacing demand-side growth. Backed by high mass-production yields and reliability, the company holds the fastest sample schedules in the industry for HBM4, supporting solid earnings share and differentiated profitability.
📝 Editor’s Comment (Perspective)
The analysts evaluate SK hynix as a company experiencing structural memory growth across not only HBM but also server DRAM and high-capacity QLC SSDs within the AI cycle. The perspective highlights that rather than short-term valuation stretch concerns, sustained high growth through 2026 and beyond is supported by a supplier-led supply-demand environment and exceptional manufacturing competitiveness.
To determine whether this investment thesis is unfolding as expected, key items to monitor include the expansion of AI server investments into general servers and high-capacity SSD demand, inventory trends driven by industry CapEx discipline, and the actual reflection of HBM4 mass production and market share defense into financial performance. These changes can be tracked through upcoming quarterly and annual earnings releases, company IR materials, and regulatory filings via DART.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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