Market: KOSPI (000660)
Brokerage : Yuanta Securities
Analyst : Gilhyun Baik
Investment Rating : BUY (M)
Target Price : 680,000 KRW (Raised)
Core Momentum : Ultra-low global DRAM inventories and constrained bit growth are expected to maximize supplier pricing power through 1H26, while sustained hyperscaler and enterprise server investment supports continued demand growth across HBM and conventional memory.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 680,000 KRW (Based on a Target PBR of 2.66x applied to the 2026–2027 average BPS, Raised)
- Investment Rating: BUY (M)
- 2025F / 2026F Financial Outlook: 2025 Revenue 92.06 trillion KRW, Operating Profit 42.03 trillion KRW, Net Income 39.05 trillion KRW / 2026 Revenue 135.06 trillion KRW, Operating Profit 70.27 trillion KRW, Net Income 58.56 trillion KRW
- Valuation Multiples: PER 10.3x, PBR 3.5x, EV/EBITDA 7.1x, ROE 43.2% (2025F) / PER 6.9x, PBR 2.4x, EV/EBITDA 4.3x, ROE 43.2% (2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 3Q25 Review: Revenue and operating profit came in at 24.4 trillion KRW (+39.1% YoY, +10.0% QoQ) and 11.4 trillion KRW (OPM 46.6%, +61.9% YoY, +23.6% QoQ), slightly below the 1-month market consensus (Revenue 24.9 trillion KRW, OP 11.6 trillion KRW). One-off gains were estimated at ~500 billion KRW (300 billion KRW in FX translation gains, 200 billion KRW in inventory valuation gains).
- Divisional Performance: The DRAM division posted revenue of 19.1 trillion KRW (+57.3% YoY, +11.4% QoQ) and operating profit of 11.1 trillion KRW (OPM 58%). Shipments rose +6.0% QoQ despite base effects, and prices increased +5.0% QoQ. The NAND division reported revenue of 4.9 trillion KRW (-0.6% YoY, +6.1% QoQ) and operating profit of 0.3 trillion KRW (OPM 6.5%), where shipments dipped -6.0% QoQ but prices climbed +11.0% QoQ due to rapid inventory depletion and tight demand.
- Industry Outlook & Projections: Global DRAM inventory at the beginning of 2026 is projected at approximately 3 weeks, enabling memory suppliers to maintain pricing leverage through 1H26. Continuous server investments by Hyperscalers and Enterprises in 2H26 will drive shipment growth and industry expansion. Enhanced earnings visibility for 2026–2027 is underpinned by sustained high-level supply capabilities in HBM.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as delivering 11.4 trillion KRW in 3Q25 operating profit driven by surging conventional DRAM demand from North American server clients and high HBM profitability, entering an era where supplier bargaining power reaches its peak amid constrained bit growth.
To verify this investment thesis, one should track whether global DRAM inventory levels remain near 3 weeks in early 2026, if pricing leverage persists through 1H26, and how 2H26 server investments align with sustained HBM and generic memory supply capabilities. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
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