Market: KOSPI (000660)
Brokerage : Yuanta Securities Korea
Analyst : Gil-hyun Baik
Investment Rating : BUY (Maintained)
Target Price : KRW 270,000 (Maintained)
Core Momentum : Sustained industry-leading earnings growth driven by 12-high HBM3E ramp-up and Solidigm-led 60TB+ eSSD demand, mitigating near-term set recovery deceleration and fading inventory reversals
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY (Maintained) / Target Price: KRW 270,000 (Maintained) / Base Share Price (2024-07-25): KRW 190,000 (Upside potential: 42%) / Market Cap: KRW 138.32 Trillion
- Financial Performance & Forecasts:
- 2022A: Revenue KRW 44.62 Trillion, Operating Profit KRW 6.81 Trillion, Controlling Net Profit KRW 2.23 Trillion
- 2023A: Revenue KRW 32.77 Trillion, Operating Profit -KRW 7.73 Trillion, Controlling Net Profit -KRW 9.11 Trillion
- 2024F: Revenue KRW 69.43 Trillion, Operating Profit KRW 24.66 Trillion, Controlling Net Profit KRW 18.62 Trillion
- 2025F: Revenue KRW 110.91 Trillion, Operating Profit KRW 48.44 Trillion, Controlling Net Profit KRW 34.37 Trillion
- Valuation Multiples (2022A → 2023A → 2024F → 2025F):
- PER: 33.3x → -8.6x → 7.4x → 4.0x
- PBR: 1.1x → 1.4x → 1.8x → 1.2x
- EV/EBITDA: 4.4x → 17.5x → 3.7x → 1.6x
- ROE: 3.6% → -15.6% → 29.6% → 38.4%
- Dividend Yield: 0.85%
🚀 2. [Market Opportunities & Business Outlook]
- 2Q24 Earnings Review:
- Consolidated Results: Revenue recorded KRW 16.42 Trillion (+124.8% YoY, +32.1% QoQ) and Operating Profit reached KRW 5.47 Trillion (turning profitable YoY, +89.5% QoQ, OPM 33.3%).
- DRAM Segment: Revenue reached KRW 11.0 Trillion (+146% YoY, +48% QoQ) and Operating Profit hit KRW 4.7 Trillion (OPM 42%, turning profitable YoY, +100% QoQ). ASP rose +20% QoQ (Bit Shipment +20% QoQ) on strong HBM3E 8Hi and MRDIMM demand.
- NAND Segment: Revenue including Solidigm posted KRW 5.0 Trillion (+122% YoY, +16% QoQ) and Operating Profit reached KRW 1.0 Trillion (OPM 20%, turning profitable YoY, +50% QoQ). ASP rose +17% QoQ (Bit Shipment -3% QoQ) driven by surging demand for 60TB+ high-capacity enterprise SSDs.
- 3Q24 Outlook:
- Consolidated Forecast: Revenue projected at KRW 19.0 Trillion (+105% YoY, +13% QoQ) and Operating Profit at KRW 7.2 Trillion (OPM 39%, turning profitable YoY, +32% QoQ).
- Segment Outlook: DRAM operating profit expected at KRW 6.0 Trillion (OPM 46%, QoQ +27%, ASP +11%, B/G +12%), NAND operating profit at KRW 1.3 Trillion (OPM 23%, QoQ +25%, ASP +5%, B/G -4%).
- Mix Enhancement: Sustained North American HBM3E demand and re-accelerating eSSD demand from Solidigm will drive strong product mix improvements.
- 4Q24 & Medium-Term Drivers:
- 12-High HBM3E Contribution: Volume deliveries beginning in 4Q24 will reinforce structural earnings outperformance across the industry.
- Global AI ASIC & Edge Devices: Momentum from global AI ASIC value chains beginning in 4Q24 alongside set makers’ procurement for upcoming new AI devices will provide strong volume drivers.
- Customized Memory Leadership: Position in the next-generation customized memory market (including future HBM generations) continues to strengthen.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix not as a conventional memory maker constrained by the gradual pace of consumer set recovery or diminishing inventory reversal tailwinds, but as a premier AI semiconductor leader that sustains superior industry-wide earnings growth through unmatched dominance in 8-high/12-high HBM3E and 60TB+ enterprise SSDs. Greater emphasis is placed on the commercial ramp of 12-high HBM3E and expansion into custom AI ASIC architectures starting in 4Q24 rather than temporary sector-wide multiple pullbacks.
To assess whether this investment thesis unfolds as anticipated, key verification points include achieving the projected 3Q24 operating profit of KRW 7.2 Trillion (DRAM OPM 46%, NAND OPM 23%), the commercial volume ramp-up of 12-high HBM3E shipments in 4Q24, and sustained margin expansion in 60TB+ enterprise SSDs driven by Solidigm. These developments can be verified through future quarterly earnings releases, official company IR materials, DART/KRX filings, and regular financial statements.
📢 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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