Market: KOSPI (000660)
Brokerage : Kiwoom Securities
Analyst : Yu-yak Park
Investment Rating : BUY (Maintain)
Target Price : KRW 260,000
Core Momentum : 2Q25 operating profit is projected to exceed market consensus driven by the expansion of HBM3e 12hi shipments and rising conventional memory prices, leading short-term earnings beats to drive stock price rebounds.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Stock Price (4/25) KRW 184,400, Target Price KRW 260,000, Rating BUY (Maintain)
- Market Cap & Supply Metrics: Market Cap KRW 134,243.6 billion, Total Shares 728,002 thousand, Foreign Ownership 53.3%, BPS (25F) KRW 141,446
- Key Financial Projections:
- 2025F Revenue: KRW 81.257 trillion, Operating Profit: KRW 34.665 trillion, Net Income: KRW 28.596 trillion (EPS: KRW 39,263)
- 2026F Revenue: KRW 88.840 trillion, Operating Profit: KRW 40.566 trillion, Net Income: KRW 29.893 trillion (EPS: KRW 41,045)
- Valuation & Financial Metrics:
- PER (25F): 4.7x, PBR (25F): 1.3x, EV/EBITDA (25F): 3.1x, ROE (25F): 32.3%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Earnings Review: Revenue reached KRW 17.6 trillion (-11% QoQ) and operating profit KRW 7.4 trillion (-8% QoQ), beating estimates. Reflected HBM3e 12hi sales effects and significant cost improvements in NAND.
- 2Q25 Preview: Revenue is projected at KRW 20.8 trillion (+18% QoQ) and operating profit at KRW 9.1 trillion (+22% QoQ), exceeding the market consensus of KRW 8.7 trillion.
- HBM & Conventional Memory Trends: Shipments of ‘Nvidia-bound HBM3e 12hi products,’ expected to maintain monopoly supply, will drive a +10% QoQ bit growth and +4% QoQ ASP increase in HBM. Conventional DRAM is also expected to record +12% QoQ bit growth and +6% QoQ ASP increase driven by customer inventory restocking ahead of tariffs, expanded AI PC sell-in sales, and entry into the server DRAM peak season.
- NAND Division: Expected to record an operating loss of KRW 209 billion despite sales volume recovery and ASP bounce.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a company capable of driving a stock price rebound backed by short-term earnings momentum and its monopolistic competitiveness centered on HBM3e 12hi, despite potential concerns over IT demand slowdowns stemming from Trump administration tariff policies. The perspective places greater emphasis on immediate, robust earnings beats and product mix improvements over macroeconomic uncertainties.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether 2Q25 operating profit meets the projected KRW 9.1 trillion, whether the expanded shipments of Nvidia-bound HBM3e 12hi products translate into actual bit growth and ASP gains, and whether the recovery trend in conventional memory demand persists. These changes can be tracked through upcoming quarterly and annual earnings releases, official IR materials, and regulatory filings.
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