Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : 1,540,000 KRW (Maintained)
Core Momentum : The resolution of HBM4 delivery concerns removes a key near-term uncertainty, while constrained wafer capacity expansion is expected to sustain memory supply tightness through 2027–2028 and support substantial earnings upgrades.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,540,000 KRW / BUY (Maintain)
- Current Price (as of 26/3/13): 910,000 KRW (Upside potential: 69.2%)
- Market Capitalization: 648,559 billion KRW (KOSPI 5,487.24pt)
- Key Financial Metrics (2023 / 2024 / 2025 / 2026F / 2027F):
- Revenue: 32,766 billion KRW / 66,193 billion KRW / 97,147 billion KRW / 281,809 billion KRW / 381,592 billion KRW
- Operating Profit: -7,730 billion KRW / 23,467 billion KRW / 47,206 billion KRW / 204,319 billion KRW / 281,225 billion KRW
- Operating Profit Margin: -23.6% / 35.5% / 48.6% / 72.5% / 73.7%
- Net Income: -9,112 billion KRW / 19,789 billion KRW / 42,919 billion KRW / 173,736 billion KRW / 248,418 billion KRW
- EPS: -12,517 KRW / 27,182 KRW / 58,955 KRW / 243,205 KRW / 348,558 KRW
- ROE: -15.6% / 31.1% / 44.2% / 84.2% / 59.8%
- P/E: NA / 6.4x / 11.0x / 3.7x / 2.6x
- P/B: 1.8x / 1.7x / 3.9x / 2.2x / 1.2x
🚀 2. [Market Opportunities & Business Outlook]
- Corporate Day Updates (Resolution of HBM Verification Concerns): Management actively dismissed market rumors regarding potential quality issues with HBM4 or shipment delays into the third quarter. It confirmed zero disruptions to major client GPU schedules and HBM4 deliveries, emphasizing a strategic focus on cost-structure optimization over aggressive tech-node racing.
- Supply-Demand Dynamics and Capacity Plans: Tight conditions across the memory sector are anticipated to persist well into 2027 and 2028. While investment timelines have been marginally pulled forward, massive infrastructure overhauls are avoided, capping 2026–2027 wafer capacity growth at roughly +18% (+90K). Yongin Y1 is designated for DRAM, while Solidigm facilities will anchor NAND expansion.
- Other Strategic Initiatives: Review regarding a U.S. ADR issuance remains under continuous evaluation with nothing finalized. Regarding next-generation HBF (High Bandwidth Flash) storage, technical standardization discussions are underway with SanDisk.
- Earnings Forecast Revisions: First-quarter operating profit has been revised to 32.3 trillion KRW, while full-year 2026 operating profit is lifted to 204.3 trillion KRW. The target price is held steady given the current stock price gap, with the valuation presenting attractive multiples at 1.9x P/B and 3.3x P/E based on upgraded estimates.
📝 Editor’s Comment (Perspective)
The analyst evaluates that recent corporate communications successfully dispelled anxieties surrounding HBM4 timelines, anchoring higher earnings projections amid a structural supply deficit extending through 2027–2028. This perspective highlights that as market uncertainties clear, the combination of robust fundamental strength and deep undervaluation offers a compelling entry window.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the delivery of the 32.3 trillion KRW operating profit target for Q1, steady HBM4 commercialization milestones, wafer capacity additions, and the endurance of tight industry supply conditions. These developments can be tracked through upcoming quarterly and annual earnings releases, official corporate IR materials, and regulatory disclosures 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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