Market: KOSPI (000660)
Brokerage : Daishin Securities
Analyst : Seok-hwan Shin
Investment Rating : BUY (Maintained)
Target Price : KRW 265,000 (Raised)
Core Momentum : Following record 4Q24 earnings, earnings growth is projected to resume in 2Q25 after a seasonal 1Q pause, supported by rising high-density memory content and expanded 12-high HBM3E shipments.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (2025.01.23) KRW 219,500, 6-Month Target Price KRW 265,000 (Raised by 10%), Investment Rating BUY (Maintained)
- Target Price Methodology: Derived by applying a Target P/B multiple of 2.0x to the 2025 estimated BPS of KRW 132,354 to calculate the target price of KRW 265,000.
- Market Cap & Supply Metrics: Market Capitalization KRW 159.797 trillion (Weight: 7.48%), Capital KRW 3.569 trillion, 52-Week High/Low KRW 241,000 / KRW 132,300, Foreign Ownership 55.88%
- Key Financial Projections (K-IFRS Consolidated):
- 2024F Revenue: KRW 66.193 trillion, Operating Profit: KRW 23.467 trillion, Net Income Attributable to Shareholders: KRW 19.775 trillion (EPS: KRW 27,163, Turned to Profit)
- 2025F Revenue: KRW 86.374 trillion (+31% YoY), Operating Profit: KRW 33.691 trillion (+44% YoY), Net Income Attributable to Shareholders: KRW 24.480 trillion (EPS: KRW 33,598)
- 2026F Revenue: KRW 89.308 trillion, Operating Profit: KRW 31.159 trillion, Net Income Attributable to Shareholders: KRW 21.718 trillion (EPS: KRW 29,830)
- Valuation & Financial Metrics:
- 2024F: P/E 6.5x, P/B 2.2x, ROE 31.4%, BPS KRW 99,702
- 2025F: P/E 5.3x, P/B 1.7x, ROE 28.9%, BPS KRW 132,354
- 2026F: P/E 5.9x, P/B 1.4x, ROE 20.3%, BPS KRW 161,277
🚀 2. [Market Opportunities & Business Outlook]
- 4Q24 Earnings Review: Revenue reached KRW 19.77 trillion (KRW 19.767 trillion, QoQ +12%, YoY +75%) and operating profit KRW 8.08 trillion (KRW 8.083 trillion, QoQ +15%, YoY +2,236%), hitting a record quarterly high in line with expectations.
- 4Q24 Divisional Breakdown:
- DRAM: Supported by high-end memory supply, DRAM ASP rose +10% QoQ despite legacy price drops, yielding an operating profit of KRW 7.3 trillion (OPM 50%).
- NAND: Demand weakness across end-applications pulled bit shipments (-5% QoQ) and ASP (-5% QoQ) lower, recording an operating profit of KRW 0.6 trillion (OPM 13%).
- 1Q25 Preview: Impacted by seasonal IT off-peak trends and PC/smartphone OEM inventory digestion, revenue is forecast at KRW 17.15 trillion (QoQ -13.2%, YoY +38.0%) and operating profit at KRW 6.58 trillion (QoQ -18.6%, YoY +127.9%). Projections include DRAM bit growth -13% / ASP -2% and NAND bit growth -18% / ASP -10%.
- Medium-to-Long-Term Growth Drivers: DRAM earnings growth is expected to resume from 2Q25 onward, propelled by 3Q25 IT peak season demand, rising DDR5/LPDDR5 memory content per box, expanded 12-high HBM3E supply, and anticipated memory price rebounds in 2H25.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a premier memory leader positioned to resume earnings growth starting in 2Q25 following a temporary 1Q seasonal pause, powered by expanding high-density memory content and 12-high HBM3E volume ramp-ups. The perspective places greater significance on the 3Q25 IT peak season effect, second-half price recovery expectations, and structural competitiveness across HBM, DDR5, and LPDDR5 over near-term first-quarter customer inventory adjustments.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether 1Q operating profit holds near KRW 6.58 trillion, the momentum of the 2Q earnings rebound driven by 12-high HBM3E volume expansion, and the pace of demand recovery during the 3Q25 peak season leading to second-half price turnarounds in commodity DRAM and NAND. These developments can be verified through upcoming quarterly earnings releases, official IR materials, and periodic regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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