Market: KOSPI (000660)
Brokerage : DS Investment & Securities
Analyst : Surim Lee, Jinyoung Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 290,000 (Maintained)
Core Momentum : Full-year 2025 operating profit forecasts are revised upward based on earlier-than-expected DDR5 price rebounds in 2Q and the stability of a high-performance memory portfolio highlighted by HBM projected to grow 110% YoY.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Current Price (04/14) KRW 180,200, Target Price KRW 290,000 (Maintained), Upside Potential 60.9%, Rating BUY (Maintained)
- Market Cap & Supply Metrics: Market Capitalization KRW 131.186 trillion, Total Shares Outstanding 728,002 thousand, Foreign Ownership 53.8%
- Key Financial Projections (K-IFRS Consolidated):
- 2025F Revenue: KRW 84.332 trillion, Operating Profit: KRW 36.608 trillion (Revised up from KRW 35 trillion to ~KRW 36.4 trillion), Pre-tax Profit: KRW 34.804 trillion, Net Income Attributable to Shareholders: KRW 27.125 trillion (EPS: KRW 37,260, YoY Growth: 52.2%)
- 2026F Revenue: KRW 94.011 trillion, Operating Profit: KRW 41.586 trillion, Pre-tax Profit: KRW 39.757 trillion, Net Income Attributable to Shareholders: KRW 30.985 trillion (EPS: KRW 42,562, YoY Growth: 14.2%)
- Valuation & Financial Metrics:
- 2025F: P/E 4.8x, P/B 1.4x, EV/EBITDA 2.5x, ROE 32.3%, Operating Margin 43.4%
- 2026F: P/E 4.2x, P/B 1.0x, EV/EBITDA 1.8x, ROE 27.6%, Operating Margin 44.2%
- The stock trades at 1.3x 12M Forward P/B, near the 1-year valuation floor of 1.2x.
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Preview: Revenue is projected at KRW 17.6 trillion (-11% QoQ, +41% YoY) and operating profit at KRW 6.9 trillion (-15% QoQ, +138% YoY, OPM 39.1%), beating consensus (KRW 6.5 trillion) by 5%. Projected bit growth is -10% for DRAM and -18% for NAND, with ASP falling -3% for DRAM and -6% for NAND.
- HBM & High-End Growth: Although 1Q HBM revenue temporarily declined (-21% QoQ) due to customer schedules, a strong rebound starting in 2Q is expected to drive full-year 2025 HBM revenue up by 110% YoY. HBM is projected to contribute over 45% of total operating profit in 2025.
- Price Turnaround & 2Q Outlook: Anticipating a DDR5 price rebound starting in 2Q25, 2Q DRAM operating profit estimates are raised from KRW 7.4 trillion to KRW 8.0 trillion. Front-loaded pull-in demand driven by tariff uncertainties is emerging faster than expected alongside disciplined memory supply.
- Portfolio Stability: Long-term supply agreements in HBM, resilient server DDR5 demand, and expanding sales of enterprise SSDs (eSSD) bolster earnings stability and cushion against tariff risks.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as an undervalued company securing solid earnings resilience against macro tariff headwinds through a high-performance portfolio anchored by long-term contracted HBM, server DDR5, and enterprise SSDs. The perspective places greater significance on earlier memory price rebounds and HBM’s dominant profit contribution (>45%) rather than recent market sentiment weakness.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether DDR5 prices rebound to achieve the projected 2Q DRAM operating profit of KRW 8.0 trillion, whether full-year HBM revenue achieves the +110% YoY growth trajectory, and whether the sales mix of server DDR5 and eSSDs continues to expand. These milestones can be verified through upcoming quarterly earnings releases, official IR materials, and 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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