Market: KOSPI (000660)
Brokerage : Yuanta Securities
Analyst : Gil-hyun Baek, Hyun-ju Park
Investment Rating : BUY (Maintained)
Target Price : KRW 260,000 (Maintained)
Core Momentum : Supported by solid 4Q24 results and resilient demand for high-density memory, medium-to-long term growth momentum remains intact as next-year HBM supply and server ASIC customer visibility expand through 1H25.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (1/24) KRW 221,000, Target Price KRW 260,000 (Maintained, Previous KRW 260,000), Upside Potential 18%, Investment Rating BUY (Maintained)
- Target Price Methodology: Applied a Target P/B multiple of 1.8x to the 2025 estimated book value per share (BPS).
- Market Cap & Supply Metrics: Market Capitalization KRW 160.889 trillion, Total Shares Outstanding 728,002,365, 52-Week High/Low KRW 241,000 / KRW 132,300, Foreign Ownership 55.88%, Dividend Yield 0.85%
- Key Financial Projections (K-IFRS Consolidated):
- 2024F Revenue: KRW 66.193 trillion, Operating Profit: KRW 23.468 trillion, Net Income Attributable to Shareholders: KRW 19.793 trillion
- 2025F Revenue: KRW 91.343 trillion, Operating Profit: KRW 35.070 trillion, Net Income Attributable to Shareholders: KRW 28.924 trillion
- Valuation & Financial Metrics:
- 2024F: P/E 5.9x, P/B 1.5x, EV/EBITDA 3.5x, ROE 31.3%
- 2025F: P/E 6.0x, P/B 1.5x, EV/EBITDA 3.2x, ROE 31.4%
🚀 2. [Market Opportunities & Business Outlook]
- 4Q24 Earnings Review: Company-wide revenue reached KRW 19.8 trillion (KRW 19.767 trillion, YoY +75%, QoQ +12%) and operating profit KRW 8.1 trillion (KRW 8.083 trillion, OPM 41%, YoY +2,236%, QoQ +15%), meeting market consensus (operating profit KRW 8.0 trillion).
- 4Q24 Divisional Breakdown:
- DRAM: Revenue of KRW 14.6 trillion (YoY +99%, QoQ +21%) and operating profit of KRW 7.2 trillion (OPM 50%, YoY +393%, QoQ +30%). Strong demand for high-density products (DDR5/HBM) drove blended ASP +10% and bit shipments +5% QoQ.
- NAND: Revenue of KRW 4.7 trillion (YoY +44%, QoQ -4%) and operating profit of KRW 0.9 trillion (OPM 18%, YoY turned profitable, QoQ -31%). Resilient 176-layer enterprise SSD demand was offset by consumer slowdown, leading to a 5% QoQ decline in both ASP and bit shipments.
- 1Q25 Preview: Revenue is projected at KRW 17.4 trillion (YoY +40%, QoQ -12%) and operating profit at KRW 6.3 trillion (OPM 36%, YoY +118%, QoQ -22%). DRAM operating profit is estimated at KRW 6.2 trillion (OPM 47%), with ASP rising +2% and bit shipments falling -11% QoQ due to one-off incentive expenses (~KRW 200 billion) and legacy softness. NAND earnings contribution is expected to be minimal.
- Medium-to-Long-Term Growth Drivers: Despite near-term sentiment weakness following DeepSeek news, customized LLM adoption and the imperative for AI hardware infrastructure will strengthen. SK hynix’s profitability-focused supply discipline and HBM customer diversification strategy will pursue high growth with reduced earnings volatility.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a memory leader sustaining structural high growth with muted earnings cyclicality, anchored by robust high-density memory (DDR5, HBM) demand and expanding HBM customer diversification despite seasonal off-peak trends and DeepSeek-related sentiment headwinds. The perspective places greater significance on profitability-oriented supply management and medium-to-long term HBM/server ASIC order visibility beyond 1H25 rather than temporary 1Q sequential moderation and one-off cost impacts.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether 1Q DRAM operating profit defends KRW 6.2 trillion (OPM 47%), tangible progress in HBM customer diversification, and the finalization of 2026 HBM supply commitments and server ASIC design wins through 1H25. These operational milestones can be verified through upcoming quarterly earnings releases, official IR materials, and periodic 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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