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 forecasts are revised upward by 7% to KRW 36.2 trillion based on higher memory price assumptions from 2Q onward, maintaining a Buy rating on supply constraints and resilient HBM-driven earnings.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (4.09) KRW 165,000, Target Price (12M) KRW 290,000 (Maintained), Rating BUY (Maintained)
- Market Cap & Supply Metrics: Market Capitalization KRW 120.120 trillion (Weight: 6.39%), Total Shares Outstanding 728,002.4 thousand, Foreign Ownership 54.17%
- Key Financial Projections (K-IFRS Consolidated):
- 2025F Revenue: KRW 89.931 trillion, Operating Profit: KRW 36.211 trillion (Upgraded by 7% from KRW 33.7 trillion), Pre-tax Profit: KRW 39.833 trillion, Net Income: KRW 28.937 trillion (EPS: KRW 39,775, YoY Growth: 46.33%)
- 2026F Revenue: KRW 97.125 trillion, Operating Profit: KRW 39.642 trillion, Pre-tax Profit: KRW 39.853 trillion, Net Income: KRW 31.471 trillion (EPS: KRW 43,229, YoY Growth: 8.68%)
- Valuation & Financial Metrics:
- 2025F: P/E 4.15x, P/B 1.16x, EV/EBITDA 2.37x, ROE 33.05%, BPS KRW 142,252, DPS KRW 2,204
- 2026F: P/E 3.82x, P/B 0.90x, EV/EBITDA 1.78x, ROE 27.06%, BPS KRW 183,391, DPS KRW 2,204
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Preview: Revenue is projected at KRW 18.0 trillion (+45% YoY, -9% QoQ) and operating profit at KRW 6.7 trillion (+132% YoY, -17% QoQ), slightly beating market consensus.
- Supply-Demand Dynamics: China’s trade-in subsidies accelerated smartphone channel inventory depletion, alongside front-loaded shipments ahead of tariff impositions. Supply discipline among the top three memory makers and NAND production cuts are expected to accelerate industry inventory normalization.
- DRAM & NAND Trends: Supported by robust HBM demand, SK hynix’s blended DRAM ASP demonstrated clear differentiation over peers, securing solid profitability despite seasonal off-peak trends. NAND performance is expected to meet previous estimates as higher shipment volumes offset price drops.
- CapEx & Price Assumptions: Annual CapEx is revised up from KRW 21 trillion to KRW 27 trillion to reflect 1a/1b node migrations and HBM investments, factoring in higher depreciation. NAND price assumptions are raised to reflect price increases starting in 2Q25 due to early supply cut effects.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a company securing clear earnings visibility and resilient profitability through disciplined memory industry supply and established HBM leadership, despite recent multiple compression triggered by macroeconomic and tariff uncertainties. The perspective places greater significance on structural margin expansion driven by advanced process transitions and HBM over short-term market sentiment weakness.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether 1Q operating profit reaches the projected KRW 6.7 trillion, whether price increases in DRAM and NAND materialize from 2Q onward, and whether the expanded KRW 27 trillion CapEx successfully translates into timely 1a/1b migrations and HBM capacity ramp-ups. These milestones 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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