Market: KOSPI (000660)
Brokerage : Kyobo Securities
Analyst : Boyoung Choi
Investment Rating : Buy (Maintained)
Target Price : 1,100,000 KRW (Raised)
Core Momentum : Robust AI server and hyperscaler investment is expected to sustain broad-based DRAM and NAND price increases, while HBM4 and next-generation high-value memory products support continued margin and earnings expansion.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,100,000 KRW (Raised)
- Investment Rating: Buy (Maintained)
- 2026E Financial Outlook: Revenue 184.88 trillion KRW, Operating Profit 122.11 trillion KRW, Net Income 104.59 trillion KRW
- EPS: 143,611 KRW (2026E)
- Valuation Multiples: P/E 6.0x, P/B 2.9x, EV/EBITDA 4.3x, ROE 62.4% (Based on 2026E)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Review: Revenue reached 32.83 trillion KRW (+66% YoY, +34% QoQ) and operating profit hit 19.17 trillion KRW (+137% YoY, +68% QoQ, OPM +58%), significantly beating consensus estimates (Revenue 31 trillion KRW, Operating Profit 16.4 trillion KRW). Estimated DRAM B/G +3%, ASP +25%, operating profit 16.6 trillion KRW (OPM +67%) / NAND B/G +11%, ASP +31%, operating profit 2.156 trillion KRW (OPM +29%).
- Shareholder Returns & HBM Competitiveness: Executed robust shareholder return policies including a special dividend of 2.1 trillion KRW and a treasury share cancellation worth 12.2 trillion KRW. HBM4 targets required performance based on 1b technology and aims to secure yields comparable to HBM3E using Advanced MR-MUF.
- 1Q26 Preview: Operating profit projected at 24.6 trillion KRW (+230% YoY, +8.4% QoQ, OPM +63%) on revenue of 38.9 trillion KRW. Ongoing price increases expected with [DRAM] B/G -1%, ASP +21%, operating profit 20.8 trillion KRW (OPM +71%) and [NAND] B/G -3%, ASP +25%, operating profit 3.722 trillion KRW (OPM +42%).
- Portfolio Diversification: Accelerating 1nm transition to expand high-value AI memory product mix including SoCAMM2 and GDDR7, while proactively addressing ultra-high capacity AI demand through 321-layer NAND, QLC eSSD utilization, and 245TB product development.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as a company capturing sharp earnings growth by capitalizing on robust infrastructure investment demand from AI servers and hyperscalers, driving both shipment expansion and price increases (ASP) across memory segments (DRAM and NAND). The analyst emphasizes strong shareholder return policies and high-value portfolio shifts alongside near-term earnings beats.
To verify this investment thesis, one should monitor whether 1Q26 results meet expectations (Revenue 38.9 trillion KRW, Operating Profit 24.6 trillion KRW) to sustain operating leverage, if target yields for HBM4 mass production are successfully secured, and how 1nm migration and AI product mix improvements translate into actual profitability metrics. These metrics can be tracked through upcoming quarterly earnings reports, official IR materials, and regulatory filings via DART/KRX.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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