Market: KOSPI (000660)
Brokerage : Kyobo Securities
Analyst : Bo-young Choi
Investment Rating : Buy (Maintained)
Target Price : KRW 260,000 (Maintained)
Core Momentum : Following record 4Q24 earnings, the company is poised for sequential quarterly improvements after a temporary pause in 1Q25, underpinned by solid HBM leadership and expanded DDR5/HBM product mix.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (01/23) KRW 219,500, Target Price KRW 260,000 (Maintained), Investment Rating Buy (Maintained)
- Market Cap & Supply Metrics: Market Capitalization KRW 159.797 trillion, Capital KRW 3.658 trillion, Total Shares Outstanding 728.000 million shares, 52-Week High/Low KRW 241,000 / KRW 132,300, Foreign Ownership 55.88%
- Key Financial Projections (K-IFRS Consolidated):
- 2024.12E Revenue: KRW 66.193 trillion, Operating Profit: KRW 23.749 trillion (OPM 35.9%), Net Income: KRW 21.489 trillion (EPS: KRW 29,436, Turned to Profit)
- 2025.12E Revenue: KRW 84.102 trillion (+27.1% YoY), Operating Profit: KRW 32.589 trillion (OPM 38.7%, +37.2% YoY), Net Income: KRW 25.724 trillion (EPS: KRW 35,230, +19.7% YoY)
- 2026.12E Revenue: KRW 91.687 trillion (+9.0% YoY), Operating Profit: KRW 38.694 trillion (OPM 42.2%, +18.7% YoY), Net Income: KRW 29.870 trillion (EPS: KRW 40,910, +16.1% YoY)
- Valuation & Financial Metrics:
- 2024.12E: P/E 5.9x, P/B 1.7x, EV/EBITDA 4.0x, ROE 33.6%
- 2025.12E: P/E 6.2x, P/B 1.6x, EV/EBITDA 3.7x, ROE 29.6%
- 2026.12E: P/E 5.4x, P/B 1.3x, EV/EBITDA 2.8x, ROE 26.3%
🚀 2. [Market Opportunities & Business Outlook]
- 4Q24 Earnings Review: Revenue reached KRW 19.77 trillion (KRW 19.767 trillion, YoY +75%, QoQ +12%) and operating profit KRW 8.08 trillion (KRW 8.083 trillion, YoY turned to profit, QoQ +15%, OPM 41%), meeting market consensus (Revenue KRW 19.71 trillion, Operating Profit KRW 8.0 trillion).
- 4Q24 Divisional Breakdown:
- DRAM: HBM share slightly exceeded 40%. Bit growth of +6% and ASP +10% delivered an operating profit of KRW 7.604 trillion (OPM 51%).
- NAND: Despite sluggish downstream demand, posted bit growth of -5%, ASP -4%, and an operating profit of KRW 592.0 billion (OPM 13%).
- 1Q25 Preview: Revenue is projected at KRW 17.97 trillion (YoY +45%, QoQ -9%) and operating profit at KRW 6.20 trillion (YoY +115%, QoQ -23%, OPM 34.5%). Seasonal softness, commodity price erosion, and temporary shipment slowdowns from HBM mix changes will be felt (DRAM bit growth -12% / ASP +1%, DRAM OP KRW 5.844 trillion; NAND bit growth -10% / ASP -4%, NAND OP KRW 385.6 billion).
- Quarterly Trajectory & Growth Drivers: Following a 1Q breather, quarterly operating profit is forecast to expand sequentially (2Q KRW 7.07 trillion → 3Q KRW 9.30 trillion → 4Q KRW 10.02 trillion). Declining DDR4 exposure alongside rising DDR5 and HBM mix enables a structural breakout from commodity memory cyclicality.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a leader sustaining its solid supplier position in HBM amid aggressive AI investments, poised for sequential quarterly earnings growth following a brief 1Q pause. The perspective emphasizes structural portfolio transformation—reducing DDR4 while scaling DDR5 and HBM—over near-term seasonal volume dips in commodity memory.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether 1Q DRAM operating profit defends KRW 5.84 trillion (OPM 44.1%), whether sequential quarterly operating profit expansion unfolds as projected toward KRW 10.02 trillion in 4Q, and how smoothly the HBM mix transition preserves premium margins. These operational 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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