Market: KOSPI (000660)
Brokerage : Daishin Securities
Analyst : Hyungkeun Ryu
Investment Rating : BUY (Maintained)
Target Price : KRW 330,000 (Maintained)
Core Momentum : Expanding AI inference is expected to revive general server and legacy memory demand while driving enterprise SSD growth, as easing HBM supply uncertainties and sustained market leadership provide additional support for earnings momentum.
📊 1. [Valuation & Key Financial Metrics]
- Target Price & Rating: Maintained a 6-month target price of KRW 330,000 and a BUY investment rating.
- Earnings Estimates Revision: Q3 2025 revenue is projected at KRW 24.5 trillion (q-q +10%, y-y +39%) and operating profit at KRW 11.0 trillion (OPM +45%), beating consensus estimates (revenue of KRW 23.4 trillion, operating profit of KRW 10.3 trillion).
- Key Financial Metrics (2025F / 2026F):
- Revenue: KRW 89.008 trillion (2025F) / KRW 98.071 trillion (2026F)
- Operating Profit: KRW 38.351 trillion (2025F) / KRW 39.007 trillion (2026F)
- Net Income (Parent): KRW 31.450 trillion (2025F) / KRW 29.991 trillion (2026F)
- EPS: KRW 43,201 (2025F) / KRW 39,822 (2026F)
- P/E: 6.3x (2025F) / 6.9x (2026F)
- P/B: 1.9x (2025F) / 1.5x (2026F)
- ROE: 35.3% (2025F) / 24.6% (2026F)
🚀 2. [Market Opportunities & Business Outlook]
- Support from General Semiconductors: Passing the mid-point of the cycle, demand is shifting upward around general servers alongside the expansion of AI inference. Short-term cycle risks are easing, and the operating profit estimate for Q3 2025 has been revised upward to KRW 11.0 trillion, reflecting strong DRAM sales growth projections (up 9% QoQ).
- Sustained eSSD & HBM Market Position: Due to HDD supply shortages, eSSD purchasing demand is expanding primarily among North American servers, accompanied by growth in 2Tb QLC-centered demand. Furthermore, uncertainties regarding 2026 HBM supply negotiations are expected to ease by September 2025, with SK hynix maintaining its market leadership and moving in tandem with ASIC demand growth.
📝 Editor’s Comment (Perspective)
The analyst assesses SK hynix as a company capable of challenging previous peak levels, backed not only by its HBM momentum but also by powerful supporting demand from general servers and legacy semiconductors driven by expanding AI inference. This perspective highlights solid fundamentals and diversified demand growth over short-term concerns regarding intensifying HBM competition.
To determine whether this investment thesis is unfolding as expected, key items to monitor include the achievement of the projected KRW 11.0 trillion operating profit in Q3 2025, continued shipment and pricing strength in general servers and eSSD (2Tb QLC) divisions, and the successful defense of market leadership resulting from 2026 HBM supply negotiation outcomes. These metrics can be tracked through upcoming quarterly and annual earnings releases, company IR materials, and regulatory filings via DART.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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