Market: KOSPI (000660)
Brokerage : Kiwoom Securities
Analyst : Yu-ak Pak
Investment Rating : BUY (Maintain)
Target Price : KRW 260,000 (Maintained)
Core Momentum : Operating profits for 1Q and 2Q are projected to beat previous market expectations, driven by the expanding sales proportion of high-value HBM3e 12-high and a cyclical rebound in commodity memory.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (4/7) KRW 164,800, Target Price KRW 260,000 (Maintained), Investment Rating BUY (Maintain)
- Market Cap & Supply Metrics: Market Capitalization KRW 119.975 trillion, Total Shares Outstanding 728,002 thousand, Foreign Ownership 54.5%, Dividend Yield (25E) 0.7%, BPS (25E) KRW 139,307
- Key Financial Projections (K-IFRS Consolidated):
- 2025F Revenue: KRW 84.036 trillion, Operating Profit: KRW 34.307 trillion, Pre-tax Profit: KRW 34.239 trillion, Net Income Attributable to Shareholders: KRW 27.026 trillion (EPS: KRW 37,123, YoY Growth: 36.6%)
- 2026F Revenue: KRW 91.879 trillion, Operating Profit: KRW 40.266 trillion, Pre-tax Profit: KRW 40.952 trillion, Net Income Attributable to Shareholders: KRW 31.506 trillion (EPS: KRW 43,278, YoY Growth: 16.6%)
- Valuation & Financial Metrics:
- 2025F: P/E 4.4x, P/B 1.2x, EV/EBITDA 3.2x, ROE 30.8%, Operating Margin 40.8%, Net Debt-to-Equity -0.6%
- 2026F: P/E 3.8x, P/B 0.9x, EV/EBITDA 2.4x, ROE 26.8%, Operating Margin 43.8%, Net Debt-to-Equity -15.2%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Preview: Revenue is projected at KRW 17.9 trillion (-9% QoQ) and operating profit at KRW 6.7 trillion (-17% QoQ), beating previous forecasts. Expanding sales of premium HBM3e 12-high and robust commodity sales late in the quarter contribute positively.
- Divisional Breakdown:
- DRAM: Operating profit is estimated at KRW 7.0 trillion (-8% QoQ). ASP changes (Commodity -6% QoQ, HBM +4% QoQ) and bit growth (-8% QoQ) are expected to slightly outperform company guidance due to pre-tariff inventory restocking.
- NAND: Operating loss of KRW 0.4 trillion is projected, in line with expectations, as both bit growth (-17% QoQ) and ASP (-16% QoQ) experience declines.
- 2Q25 Outlook: Revenue is forecast at KRW 20.2 trillion (+12% QoQ) and operating profit at KRW 8.0 trillion (+19% QoQ), beating previous estimates (KRW 7.6 trillion). Full-scale shipments of HBM3e 12-high to NVIDIA will bolster 3Q HBM bit growth and pricing. Commodity DRAM is set to post bit growth of +9% QoQ and ASP growth of +3% QoQ, while NAND operating loss narrows to KRW 0.1 trillion.
- Investment View & Catalysts: Market concerns regarding AI scaling limits and NVIDIA margin peaks are substantially priced in. As tangible consumer demand contraction from tariffs will likely lag by several months, 2Q HBM outperformance and commodity memory recovery serve as clear near-term catalysts for a stock rebound.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as an attractive near-term buying opportunity poised to beat earnings expectations through the full-scale ramp-up of high-value HBM3e 12-high and commodity memory price recoveries, with prior AI-related macro concerns already priced in. The perspective places greater significance on the immediate earnings upside from product mix improvements and commodity turnaround rather than delayed macro demand headwinds from tariffs.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether operating profit reaches KRW 6.7 trillion in 1Q and KRW 8.0 trillion in 2Q, whether NVIDIA-bound HBM3e 12-high shipments drive 3Q HBM ASP gains, and whether commodity DRAM achieves the expected +3% QoQ price rebound. 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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