Market: KOSPI (000660)
Brokerage : Eugene Investment & Securities
Analyst : Seungwoo Lee
Investment Rating : BUY (Maintained)
Target Price : 330,000 KRW (Raised)
Core Momentum : Sustained robust fundamentals and earnings growth driven by differentiated 2Q results and legacy product EOL effects
📊 1. [Valuation & Key Financial Metrics]
- Current Price (as of 2025.07.24): 269,500 KRW
- 6-Month Target Price: 330,000 KRW (Raised)
- Investment Rating: BUY (Maintained)
- Key Earnings Estimates (2025F–2026F): 2025F Revenue 87,229 billion KRW, Operating Profit 36,638 billion KRW, Pre-tax Profit 37,381 billion KRW, Net Profit 30,979 billion KRW / 2026F Revenue 101,585 billion KRW, Operating Profit 40,037 billion KRW
- Key Valuation Metrics (2025F/2026F): 2025F EPS 42,539 KRW, PER 6.3x, PBR 1.9x, ROE 35.3% / 2026F EPS 43,964 KRW, PER 6.1x, PBR 1.5x, ROE 27.4%
🚀 2. [Market Opportunities & Business Outlook]
- Earnings Performance: Achieved differentiated results in 2Q with revenue of 22.2 trillion KRW and operating profit of 9.2 trillion KRW. DRAM and NAND bit growth significantly outperformed guidance at mid-20% and 70%, respectively, while inventory turnover fell to its lowest level in 15 quarters.
- Second-Half Outlook: Although front-loaded demand driven by tariff precautions existed in the first half, overall industry conditions are projected to be much stronger than previous concerns. Particularly, inventory-securing demand driven by EOL (End-of-Life) effects in certain legacy products is tightening total memory supply, keeping prices more resilient than expected.
- HBM & Semiconductor Big 4 Formation: SK hynix stands out as the only memory manufacturer surpassing its 2018 earnings peak. Despite concerns over HBM growth peaks and intensifying competition, a trajectory distinct from traditional DRAM is expected to form even beyond the peak. Projected to form a ‘Semiconductor Big 4’ alongside Nvidia, TSMC, and Broadcom, with operating profits estimated at 36.6 trillion KRW for 2025 and 40 trillion KRW for 2026.
📝 Editor’s Comment (Perspective)
The reporting analyst evaluates SK hynix not as a conventional memory supplier trapped by short-term industry peaks or competition fears, but as a core member of the global ‘Semiconductor Big 4’—alongside Nvidia, TSMC, and Broadcom—forging a new trajectory for the memory market through differentiated HBM competitiveness and legacy EOL effects. This perspective places greater significance on structural earnings growth and distinct fundamentals over short-term market apprehensions.
To determine whether this investment thesis is actively unfolding, it is necessary to monitor key variables such as the resilience of memory prices in the second half, whether inventory tightening from legacy EOL effects translates into actual earnings performance, and the sustained realization of projected operating profits for 2025–2026. These developments can be verified through upcoming quarterly and annual earnings releases, official corporate IR materials, and official disclosures on DART/KRX.
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