Market: KOSPI (000660)
Brokerage : Hana Securities
Analyst : Rok-ho Kim, Young-gyu Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 290,000 (Maintained)
Core Momentum : Full-year 2025 operating profit estimates are revised upward driven by robust HBM demand and strong DRAM profitability improvements, offsetting conservative assumptions for the NAND segment.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (4/24) KRW 178,300, Target Price (12M) KRW 290,000 (Maintained), Investment Rating BUY (Maintained)
- Market Cap & Supply Metrics: Market Capitalization KRW 129.803 trillion (Market Cap Weight: 6.28%), Total Shares Outstanding 728,002.4 thousand, Foreign Ownership 53.32%
- Key Financial Projections (K-IFRS Consolidated):
- 2025F Revenue: KRW 83.102 trillion, Operating Profit: KRW 37.268 trillion (Upgraded by 3%), Pre-tax Profit: KRW 39.051 trillion, Net Income: KRW 31.301 trillion (EPS: KRW 42,996, YoY Growth: 58.18%)
- 2026F Revenue: KRW 93.387 trillion, Operating Profit: KRW 44.825 trillion, Pre-tax Profit: KRW 45.044 trillion, Net Income: KRW 36.020 trillion (EPS: KRW 49,478, YoY Growth: 15.08%)
- Valuation & Financial Metrics:
- 2025F: P/E 4.21x, P/B 1.24x, EV/EBITDA 1.91x, ROE 35.25%, BPS KRW 145,473, DPS KRW 2,204
- 2026F: P/E 3.66x, P/B 0.94x, EV/EBITDA 0.92x, ROE 29.79%, BPS KRW 192,861, DPS KRW 2,204
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Earnings Review: Revenue reached KRW 17.6 trillion (YoY +42%, QoQ -11%) and operating profit KRW 7.4 trillion (YoY +158%, QoQ -8%). While revenue missed estimates by 2% due to NAND ASP and shipment declines, operating profit beat forecasts by 10% on superior DRAM profitability.
- DRAM & NAND Performance: DRAM prices held flat QoQ while shipments declined by 8%, indicating limited pull-in distortion. Mix improvements led by HBM and high-density DRAM expanded operating profit margins despite total revenue contraction.
- 2Q25 Preview: Revenue is projected at KRW 20.3 trillion (YoY +24%, QoQ +15%) and operating profit at KRW 9.1 trillion (YoY +67%, QoQ +23%), revised upward from the previous KRW 8.7 trillion. Low base effects from 1Q and pull-in demand driven by the 90-day tariff grace period will lift 2Q DRAM and NAND shipments by +11% and +20% QoQ, respectively. 2Q DRAM price is expected to rise +4% QoQ, with sales expansion of HBM3E 12-high supporting blended ASP.
- Growth Drivers: Structural DRAM profitability continues to drive company-wide earnings upward despite conservative revisions for NAND. Resilient HBM demand and low earnings volatility serve as key differentiators amid broader macroeconomic uncertainties.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a company proving its underlying earnings power through differentiated DRAM competitiveness centered on HBM and high-density products, even amid macroeconomic uncertainties and conservative expectations for NAND. The perspective places greater significance on robust HBM demand and structural margin expansion in DRAM rather than short-term cyclical volatility across the memory sector.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether the expansion of HBM3E 12-high sales drives a +4% QoQ increase in 2Q DRAM blended ASP and achieves the projected KRW 9.1 trillion operating profit, whether full-year DRAM shipments remain resilient despite second-half macro uncertainties, and whether HBM demand stability is sustained. These developments can be verified through upcoming quarterly earnings releases, official IR materials, and regulatory filings.
📢 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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