Market: KOSPI (000660)
Brokerage : IBK Securities
Analyst : Un-ho Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 200,000 (Maintained)
Core Momentum : Expanding presence in AI servers along with differentiated Bit Growth and rising ASPs across DRAM and NAND is expected to drive continuous operating profit growth throughout 2024.
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY (Maintained), Target Price KRW 200,000 (Maintained). Calculated by applying a Target PBR of 2.4x to the 2024F estimated BPS of KRW 83,467.
- 2024 Annual Forecasts:
- Revenue: KRW 63.95 Trillion (+95.2% YoY)
- Operating Profit: KRW 15.40 Trillion (Turnaround to Profit, OPM 24.1%)
- Net Profit (Controlling Interest): KRW 8.71 Trillion (Turnaround to Profit, NPM 13.7%)
- EPS: KRW 11,961 (Upwardly revised from KRW 7,144)
- Medium-Term Outlook:
- 2025F: Revenue KRW 77.70 Trillion, Operating Profit KRW 16.43 Trillion, Net Profit KRW 11.88 Trillion (EPS KRW 16,324)
- 2026F: Revenue KRW 95.73 Trillion, Operating Profit KRW 23.40 Trillion, Net Profit KRW 17.58 Trillion (EPS KRW 24,149)
- Key Valuation Multiples (2024F): ROE 15.2%, PER 15.0x, PBR 2.2x, EV/EBITDA 5.3x
🚀 2. [Market Opportunities & Business Outlook]
- Q1 2024 Earnings Review:
- Revenue recorded KRW 12.40 Trillion (+9.9% QoQ) and Operating Profit reached KRW 2.88 Trillion (over 8x QoQ increase), surpassing earlier market forecasts.
- DRAM: Revenue increased +3.1% QoQ. While Bit Growth was -16.0%, ASP rose +22.0% QoQ, driving operating margin improvement.
- NAND: Revenue rose +37.4% QoQ. Bit Growth was 0.0%, while ASP climbed +32.0% QoQ. Turned to an operating profit aided by approximately KRW 900 Billion in inventory valuation loss reversals.
- Q2 2024 Earnings Outlook:
- Revenue is projected at KRW 15.44 Trillion (+24.2% QoQ) and Operating Profit at KRW 3.95 Trillion (+37.3% QoQ), pointing to sustained earnings expansion.
- DRAM: Revenue is expected to increase +30.8% QoQ, supported by Bit Growth of +15.0% and ASP growth of +12.0%.
- NAND: Revenue is estimated to grow +9.4% QoQ (Bit Growth 0.0%, ASP +10.0%), achieving operating profitability on price increases without inventory reversal effects.
- Key Strengths & Growth Factors:
- Solidifying market position in high-growth AI server applications.
- Maintaining ongoing differentiation against industry peers in both Bit Growth and ASP trends.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as a company strengthening its competitive position in the high-growth AI server market, leveraging sustained differentiation in Bit Growth and ASP against competitors to drive operating profit expansion throughout 2024. The perspective focuses on the company’s relative competitive advantage and the broader price recovery trends across DRAM and NAND.
To verify whether this investment thesis unfolds as anticipated, key parameters to monitor include whether the differentiation in Bit Growth and ASP relative to peers persists into upcoming quarters, and whether the NAND division can maintain operating profitability without one-off inventory valuation reversals. These developments can be tracked through future quarterly earnings releases, official IR materials, and periodic financial reports.
📢 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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