Market: KOSPI (000660)
Brokerage : Kyobo Securities
Analyst : Bo-young Choi
Investment Rating : BUY (Maintained)
Target Price : KRW 220,000 (Maintained)
Core Momentum : Record quarterly revenue driven by steep HBM3e-led ASP increases, with tight memory supply-demand dynamics and expanding AI content supporting sustained earnings growth
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: BUY (Maintained) / Target Price: KRW 220,000 (Maintained) / Base Share Price (2024-07-25): KRW 190,000 / Market Cap: KRW 138.32 Trillion
- Valuation Assessment & Investment Thesis:
- Despite recent sharp share price corrections amid broader market uncertainty, earnings outperformance is set to continue due to ongoing AI memory content growth and limited conventional DRAM supply additions.
- Lowered valuation levels enhance the stock’s investment appeal.
- Financial Performance & Forecasts:
- 2022.12: Revenue KRW 44.62 Trillion, Operating Profit KRW 6.81 Trillion, Net Profit KRW 2.24 Trillion
- 2023.12: Revenue KRW 32.77 Trillion, Operating Profit -KRW 7.73 Trillion, Net Profit -KRW 9.14 Trillion
- 2024.12(E): Revenue KRW 64.50 Trillion, Operating Profit KRW 20.76 Trillion, Net Profit KRW 13.07 Trillion
- 2025.12(E): Revenue KRW 81.00 Trillion, Operating Profit KRW 32.20 Trillion, Net Profit KRW 24.35 Trillion
- 2026.12(E): Revenue KRW 88.40 Trillion, Operating Profit KRW 30.07 Trillion, Net Profit KRW 37.19 Trillion
- Valuation Multiples (2022.12 → 2023.12 → 2024.12E → 2025.12E → 2026.12E):
- EPS: KRW 3,063 → -KRW 12,517 → KRW 17,901 → KRW 33,357 → KRW 50,938
- PER: 24.5x → -11.3x → 10.6x → 5.7x → 3.7x
- PBR: 0.9x → 1.9x → 2.1x → 1.6x → 1.1x
- PCR: 2.5x → 17.4x → 4.2x → 3.3x → 3.6x
- EV/EBITDA: 3.5x → 21.2x → 4.7x → 0.8x → -21.0x
- ROE: 3.6% → -15.6% → 21.9% → 31.4% → 34.6%
- Operating Margin: 15.3% → -23.6% → 32.2% → 39.8% → 34.0%
🚀 2. [Market Opportunities & Business Outlook]
- 2Q24 Earnings Review:
- Consolidated Results: Revenue posted KRW 16.42 Trillion (+125% YoY, +32% QoQ) and Operating Profit reached KRW 5.47 Trillion (turning profitable YoY, +89% QoQ), beating consensus (Revenue KRW 16.19 Trillion, Operating Profit KRW 5.19 Trillion) and setting a new all-time quarterly revenue record.
- DRAM Segment: Bit Growth +21%, ASP +17%, Operating Profit KRW 4.66 Trillion (OPM 44.5%). HBM revenue surged over +80% QoQ and +250% YoY, driven by rising HBM3e mix.
- NAND Segment: Bit Growth -2%, ASP +18%, Operating Profit KRW 0.68 Trillion (OPM 14.0%), supported by an approximate 50% QoQ increase in eSSD revenue.
- One-off Items: Inventory valuation allowance reversals totaled ~KRW 300 Billion, entering the final stages.
- 3Q24 Outlook & Strategy:
- Consolidated Forecast: Revenue projected at KRW 18.42 Trillion (+103% YoY, +12% QoQ) and Operating Profit at KRW 6.60 Trillion (turning profitable YoY, +20% QoQ), adhering strictly to a price-over-volume strategy.
- DRAM: Bit Growth +6%, ASP +11%, Operating Profit KRW 5.05 Trillion (OPM 49.5%). 8-high HBM3E will become the primary volume driver in 3Q24, accounting for more than half of full-year HBM shipments.
- NAND: Bit Growth +4%, ASP +5%, Operating Profit KRW 0.99 Trillion (OPM 18.6%), driven by eSSD expansion and mix optimization.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix not as a conventional memory player exposed to short-term market corrections, but as a premier AI memory leader that achieves record-breaking financial performance through a disciplined price-over-volume strategy and heavy portfolio concentration in HBM3e and enterprise SSDs. Greater emphasis is placed on tight supply-demand dynamics driven by limited conventional DRAM capacity and structural AI hardware demand rather than short-term price pullbacks.
To assess whether this investment thesis unfolds as anticipated, key verification points include achieving the projected 3Q24 operating profit of KRW 6.60 Trillion, establishing 8-high HBM3E as the dominant product comprising over 50% of annual HBM shipments, and confirming NAND operating margins reaching the 18% range supported by eSSD expansion. These developments can be verified through future quarterly earnings releases, official company IR materials, DART/KRX filings, and regular financial statements.
📢 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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