Market: KOSPI (000660)
Brokerage : Daishin Securities
Analyst : Hyeongkeun Ryu (RA: Jiwon Seo)
Investment Rating : BUY (Maintained)
Target Price : 700,000 KRW (Raised)
Core Momentum : Disciplined capacity investment and volume commitments through LTAs are expected to prolong favorable supply-demand conditions, reduce memory-cycle volatility, and strengthen earnings visibility supporting higher 2026 earnings and valuation.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 700,000 KRW (Based on a target P/B raised from 2.6x to 3.0x, applying a 30% premium over the 12m Fwd P/B upper band)
- Investment Rating: BUY (Maintained)
- 2025F / 2026F Financial Outlook: 2025 Revenue 92.03 trillion KRW, Operating Profit 42.05 trillion KRW / 2026 Revenue 128.09 trillion KRW, Operating Profit 72.04 trillion KRW
- EPS: 53,308 KRW (2025F), 77,324 KRW (2026F)
- Valuation Multiples: PER 9.6x, PBR 3.4x, ROE 41.8% (2025F) / PER 6.6x, PBR 2.3x, ROE 40.4% (2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 3Q25 Review: Revenue reached 24.44 trillion KRW (+39.1% YoY, +10.0% QoQ) and operating profit hit 11.38 trillion KRW (+61.9% YoY, +23.6% QoQ), meeting prior estimates while slightly missing market consensus. Net income was recorded at 12.06 trillion KRW.
- Evolving Supply & Demand Strategies: 1) Maintaining a commitment to “Capex Discipline,” aiming to sustain industry upcycles through disciplined supply growth rather than reacting to FOMO. 2) Pursuing structural changes in pricing dynamics by locking in volumes through Long-Term Agreements (LTAs), thereby enhancing visibility and reducing cyclical volatility.
- Earnings & Valuation Upgrades: Reflecting sustained upcycle conditions through year-end and structural shifts in memory positioning and industry ecosystems, the 2026 operating profit forecast is revised upward from 62 trillion KRW to 72 trillion KRW, resulting in a new target price of 700,000 KRW (implying a 2026 P/E multiple of 6.6x).
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as distinguishing this cycle from past ones through disciplined capital expenditures and structural improvements via LTAs, curbing cyclical volatility and supporting a valuation re-rating backed by a revised 2026 operating profit outlook of 72 trillion KRW.
To verify this investment thesis, one should track whether actual 2026 operating profit meets the 72 trillion KRW target, if Capex Discipline remains intact, and how volume commitments through LTAs translate into stable earnings visibility. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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