Market: KOSPI (000660)
Brokerage : Shinhan Investment Corp.
Analyst : Hyungtae Kim, Hyesoo Song
Investment Rating : BUY (Maintained)
Target Price : 380,000 KRW (Maintained)
Core Momentum : Structural beneficiary expectations and sustained competitive advantage driven by dominant DRAM profitability and concentrated HBM investment plans
📊 1. [Valuation & Key Financial Metrics]
- Current Price (as of 2025.07.24): 269,000 KRW
- 6-Month Target Price: 380,000 KRW (Maintained)
- Investment Rating: BUY (Maintained)
- Key Earnings Estimates (2025F): Revenue 86,807.6 billion KRW, Operating Profit 36,704.2 billion KRW, Net Profit attributable to controlling shareholders 31,535.2 billion KRW
- Key Valuation Metrics (2025F): PER 6.2x, PBR 1.9x, ROE 35.2%
🚀 2. [Market Opportunities & Business Outlook]
- 2Q25 Review: Revenue recorded at 22.2 trillion KRW and operating profit at 9.2 trillion KRW, beating consensus. Reflected AI diffusion and pull-in effects with DRAM B/G at +25% and ASP at +1%, reconfirming dominant DRAM profitability with an operating margin of 54.3%. NAND division recorded B/G of +70% and ASP of -9% driven by eSSD demand, successfully normalizing inventory levels.
- 3Q25 Preview: Expected to break record earnings again with revenue of 23.3 trillion KRW and operating profit of 10.1 trillion KRW. Price uptrend projected to continue due to advanced node transition and conservative supply stance (DRAM +3%, NAND +1%).
- Valuation & Risk: Annual CapEx for 2025 planned at 24.8 trillion KRW (up 24% from previous). Announcements of expanded HBM-related equipment investments create expectations for resolving contract-related concerns, while differentiated profitability and mid-to-long-term competitive advantages remain intact. Maintained as Top-pick.
📝 Editor’s Comment (Perspective) The reporting analyst evaluates SK hynix not as a stock trapped by short-term fatigue from rapid price surges or competition concerns, but as a high-value semiconductor enterprise sustaining structural competitive advantages through clear AI Capex beneficiaries, dominant DRAM profitability, and expanded HBM investments. This perspective places greater significance on long-term supply visibility and growth headroom centered on premium products over short-term industry noise.
To determine whether this investment thesis is actively unfolding, it is essential to monitor key variables such as the realization of record-breaking earnings and price increases (DRAM +3%, NAND +1%) in the third quarter, the execution pace of the revised annual CapEx, and how expanded HBM equipment investments translate into tangible supply visibility and contract structures. These developments can be tracked through upcoming quarterly and annual earnings releases, official corporate IR materials, and official disclosures on DART/KRX.
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