Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim (RA: Sehoon Jung)
Investment Rating : BUY (Maintained)
Target Price : 1,370,000 KRW (Raised)
Core Momentum : Sharp DRAM and NAND price increases are expected to translate directly into margin and operating profit expansion through strong operating leverage, while rising FCF supports aggressive dividends and treasury share cancellations.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,370,000 KRW (Based on 2026F OP of 148 trillion KRW and memory sector 26F average P/B, Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 229.45 trillion KRW, Operating Profit 147.09 trillion KRW, Net Income 124.30 trillion KRW
- EPS: 170,736 KRW (2026F)
- Valuation Multiples: P/E 5.0x, P/B 2.6x, ROE 70.3% (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Review: Revenue reached 32.8 trillion KRW (+34.3% QoQ) and operating profit hit 19.2 trillion KRW (+68.7% QoQ). ASPs for DRAM/NAND rose +24%/+33%, exceeding estimates due to fixed-cost dilution from high price baselines.
- 1Q26 Preview: Operating profit is projected at 27.9 trillion KRW (+45.5% QoQ) on revenue of 44.9 trillion KRW (+36.7% QoQ). ASPs are expected to surge by +55% for DRAM and +33% for NAND, driving OPM to 62%.
- Industry & HBM: Market visibility on memory pricing and earnings is extremely high. HBM4 is in mass production as scheduled utilizing proven tech nodes and backend processes from HBM3E. Full-year 2026 earnings are projected at 230 trillion KRW in revenue and 148 trillion KRW in operating profit.
- Shareholder Returns: Approved a special dividend of 1,500 KRW alongside regular dividends and the cancellation of treasury shares worth 12.2 trillion KRW (2.1% stake). Factoring in the 25-27 cumulative FCF-linked special return policy, potential dividend yield could reach up to 16% at current stock prices.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as an enterprise equipped with a powerful leverage structure where sharp memory price uptrends flow directly into operating profit expansion amid a robust industry cycle. The analyst highlights top-tier ROE levels and highly visible earnings trajectories.
To verify this investment thesis, one should monitor whether 1Q26 results hit the projected revenue of 44.9 trillion KRW and operating profit of 27.9 trillion KRW (OPM 62%), if steep ASP uptrends across DRAM and NAND persist, and how FCF-driven shareholder return policies are executed. These metrics can be tracked through upcoming quarterly earnings releases, official IR materials, and regulatory filings via DART/KRX.
📢 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.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
