Market: KOSPI (000660)
Brokerage : Hana Securities
Analyst : Rok-Ho Kim (RA: Myeonggyu Kim)
Investment Rating : BUY (Maintained)
Target Price : 1,120,000 KRW (Raised)
Core Momentum : Intensifying memory supply shortages and robust server demand are expected to sustain DRAM and NAND price increases, while multi-year supply contracts and expanding HBM4 shipments strengthen earnings growth and mid-to-long-term visibility.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,120,000 KRW (Raised from 850,000 KRW reflecting upward revisions in 2026 operating profit)
- Investment Rating: BUY (Maintained)
- 2026 Financial Outlook: Revenue 180.9 trillion KRW, Operating Profit 112.0 trillion KRW, Net Income 91.548 trillion KRW
- EPS: 125,753 KRW (Based on 2026 estimates)
- Valuation Multiples: PER 5.96x, PBR 2.65x, ROE 57.70% (Based on 2026 estimates)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Preview: Revenue is expected to reach 32.6 trillion KRW (+65% YoY, +33% QoQ) and operating profit 17.0 trillion KRW (+115% YoY, +52% QoQ). QoQ memory price increases are assumed at 22% for DRAM and 28% for NAND.
- Full-Year Outlook: Annual 2026 revenue and operating profit are projected to surge 87% and 147% YoY to 180.9 trillion KRW and 112.0 trillion KRW, respectively. Supply shortages are anticipated to persist from 4Q25 through 1Q26, leading to assumed annual price gains of 54% for DRAM and 55% for NAND.
- Supply & Contracts: While smartphone and PC clients may adjust shipment volumes due to cost burdens, robust server-side demand is expected to offset them. Ongoing discussions regarding 2-to-3-year long-term supply contracts with major customers signal cycle prolongation and enhanced earnings visibility.
- HBM & Investments: HBM-related revenue and operating profit estimates are seeing substantial upward revisions driven by recent memory pricing trends. HBM4 shipments are projected to account for over half of total volume in the second half, while backend packaging line expansions reinforce mid-to-long-term top-line visibility.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as an enterprise capturing steeper-than-expected memory price uptrends and intensifying supply shortages, driving full-year 2026 operating profit to 112 trillion KRW. The analyst emphasizes robust growth momentum alongside HBM valuation premiums and structural visibility secured via long-term contracts.
To verify this investment thesis, one should track whether actual 4Q25 and 1Q26 earnings meet estimates, if the annual price increase assumptions for DRAM (54%) and NAND (55%) materialize, and how long-term supply contracts and HBM4 mass production schedules unfold. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
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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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