Market: KOSPI (000660)
Brokerage : IBK Securities
Analyst : Un-ho Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 300,000 (Maintained)
Core Momentum : Differentiated profitability is expected to persist driven by high-end market growth and expanding HBM demand across AI inference and ASIC workloads.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (4/24) KRW 178,300, Target Price KRW 300,000 (Maintained), Investment Rating BUY (Maintained)
- Market Cap & Supply Metrics: Market Capitalization KRW 129.803 trillion, Total Shares Outstanding 728,002 thousand, Foreign Ownership 53.3%, Dividend Yield (2025F) 1.1%
- EPS Estimate Revisions: 2025F EPS upgraded to KRW 52,157 (from KRW 42,336), 2026F EPS upgraded to KRW 56,059 (from KRW 45,370)
- Key Financial Projections (K-IFRS Consolidated):
- 2025F Revenue: KRW 96.018 trillion, Operating Profit: KRW 41.941 trillion, Pre-tax Profit: KRW 45.239 trillion, Net Income Attributable to Shareholders: KRW 37.971 trillion (ROE: 41.4%)
- 2026F Revenue: KRW 120.911 trillion, Operating Profit: KRW 49.554 trillion, Pre-tax Profit: KRW 49.549 trillion, Net Income Attributable to Shareholders: KRW 40.811 trillion (ROE: 31.6%)
- 2027F Revenue: KRW 128.390 trillion, Operating Profit: KRW 63.826 trillion, Pre-tax Profit: KRW 64.994 trillion, Net Income Attributable to Shareholders: KRW 53.548 trillion (ROE: 30.6%)
- Valuation & Financial Metrics:
- 2025F: P/E 3.5x, P/B 1.2x, EV/EBITDA 2.4x, Operating Margin 43.7%
- 2026F: P/E 3.2x, P/B 0.9x, EV/EBITDA 1.6x, Operating Margin 41.0%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Earnings Review: Revenue reached KRW 17.6 trillion (-10.8% QoQ) and operating profit KRW 7.44 trillion (-7.9% QoQ), beating previous estimates. DRAM revenue declined 3.9% QoQ (Bit Growth -7.4%, ASP flat), and NAND revenue fell 33.5% QoQ (Bit Growth -17.3%, ASP -20.0%).
- 1Q25 Product Mix Dynamics: Within total HBM, HBM3E accounted for over 80% and 12-high exceeded 20%. The graphics segment including HBM reached a record high of 48% of total DRAM, while mobile hit a low of 9.5%. In NAND, SSD portion declined to 59%, yet the segment maintained an operating profit of KRW 81.0 billion.
- 2Q25 Preview: Revenue is projected at KRW 20.7 trillion (+17.7% QoQ) and operating profit at KRW 8.75 trillion. DRAM revenue is expected to grow +16.5% QoQ to KRW 16.46 trillion, while NAND revenue is forecast to rise +19.4% QoQ driven by consumer demand recovery lifting Bit Growth to +25%.
- Growth Drivers: HBM demand is expanding into AI inference workloads alongside AI training, with ASIC-bound HBM adoption accelerating. SK hynix maintains distinct differentiation over competitors in terms of Bit Growth and ASP resilience.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a leading memory manufacturer commanding superior profitability as high-end market growth broadens from AI training into inference and custom ASIC architectures. The perspective emphasizes sustainable earnings power driven by structural Bit Growth and ASP advantages over competitors, highlighting compelling valuation upside over near-term quarterly fluctuations.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether 2Q DRAM revenue (KRW 16.46 trillion) and total operating profit (KRW 8.75 trillion) meet projections, whether high profitability is preserved via expanding HBM3E 12-high shipments, and how rapidly HBM adoption accelerates across AI inference and ASIC clients. 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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