Market: KOSPI (000660)
Brokerage : Shinhan Securities
Analyst : Hyungtae Kim, Hyesu Song
Investment Rating : BUY (Maintained)
Target Price : KRW 380,000 (Upgraded)
Core Momentum : The target price is revised upward based on expanding shipments of HBM3E 12-high in 2Q25 and solid growth momentum driven by HBM competitive advantage and advanced DRAM demand expansion.
📊 1. [Valuation & Key Financial Metrics]
- Current Price (as of June 27): KRW 284,000 (Upside Potential: 33.8%)
- Investment Rating & Target Price: BUY (Maintained), KRW 380,000 (Upgraded)
- Target Price Methodology: Applied a target price-to-book ratio (P/B) of 2.2x (upper band of historical range) to the 12-month forward book value per share (BPS) of KRW 170,922.
- Key Financial Projections:
- 2025F Revenue: KRW 87.943 trillion, Operating Profit: KRW 37.974 trillion, Net Income: KRW 33.617 trillion
- 2026F Revenue: KRW 99.389 trillion, Operating Profit: KRW 42.580 trillion, Net Income: KRW 34.759 trillion
- Valuation & Financial Metrics:
- PER (25F): 6.2x, PBR (25F): 1.9x, EV/EBITDA (25F): 3.8x, ROE (25F): 37.1%, Dividend Yield (DY): 0.5%
- Market Capitalization: KRW 206.753 trillion, Total Shares (Float): 728.0 million shares (74.2%), Foreign Ownership: 55.5%
🚀 2. [Market Opportunities & Business Outlook]
- 2Q25 Preview: Revenue is projected at KRW 20.093 trillion and operating profit at KRW 9.02 trillion, beating consensus (Revenue KRW 20.3 trillion, Operating Profit KRW 8.8 trillion). Operating profit by division is estimated at KRW 8.98 trillion for DRAM and KRW 77 billion for NAND.
- DRAM & NAND Bit Growth / ASP: DRAM B/G +14% and ASP +6% exceeded previous estimates, driven by HBM boosting DRAM profitability (DRAM OPM 54.3%, portion >45%). NAND recorded B/G +27% and ASP -2%.
- Market Conditions & Outlook: 2025 annual revenue and operating profit are estimated at KRW 87.94 trillion and KRW 37.97 trillion, respectively. Price hike trends by memory distributors confirmed since February, alongside pull-in demand since late March, easing inventory burdens and supporting persistent price increases through year-end amid supply constraints.
- Growth Drivers: Structural growth backed by the recovery of the eSSD industry and accelerated diversification of advanced DRAM demand sources (GPU+ASIC), with favorable operating environments over competitors expected to persist through the first half of 2026.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a premier company demonstrating overwhelming profitability built on unrivaled competitive advantages in the HBM market and expanded demand for advanced DRAM. The perspective highlights the company not merely as a cyclical beneficiary of short-term earnings beats, but as a structural leader driving sustainable growth within the AI hardware ecosystem.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether the expanding share of HBM3E 12-high shipments continues to translate into superior DRAM operating margins exceeding 54%, whether the recovery of the eSSD sector and NAND profitability materialize as expected, and whether the broader adoption of advanced DRAM across GPU and ASIC applications sustains a favorable operating environment through the first half of next year. These metrics can be tracked through upcoming quarterly and annual earnings releases, official IR materials, and regulatory filings.
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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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