Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : 1,540,000 KRW (Maintained)
Core Momentum : Resilient memory pricing and a widening gap between limited capacity expansion and demand growth indicate that underlying fundamentals remain intact, while the geopolitically driven share-price correction has created significant valuation appeal.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,540,000 KRW / BUY (Maintain)
- Current Price (as of 3/4/26): 849,000 KRW (Upside potential: 81.4%)
- Market Capitalization: 605,084 billion KRW (KOSPI 5,093.54pt)
- Key Financial Metrics (2023 / 2024 / 2025F / 2026F / 2027F):
- Revenue: 32,766 billion KRW / 66,193 billion KRW / 97,147 billion KRW / 274,244 billion KRW / 371,734 billion KRW
- Operating Profit: -7,730 billion KRW / 23,467 billion KRW / 47,244 billion KRW / 185,296 billion KRW / 255,770 billion KRW
- Operating Profit Margin: -23.6% / 35.5% / 48.6% / 67.6% / 68.8%
- Net Income: -9,112 billion KRW / 19,789 billion KRW / 43,753 billion KRW / 155,742 billion KRW / 217,268 billion KRW
- EPS: -12,517 KRW / 27,182 KRW / 60,100 KRW / 213,931 KRW / 298,444 KRW
- ROE: -15.6% / 31.1% / 46.1% / 80.9% / 57.7%
- P/E: NA / 6.4x / 10.8x / 4.0x / 2.8x
- P/B: 1.8x / 1.7x / 4.0x / 2.3x / 1.3x
🚀 2. [Market Opportunities & Business Outlook]
- Distorted Correction from Panic Selling: Following U.S. airstrikes in Iran on February 28, the share price shed 20.0% within just three sessions—outpacing broader market losses—in what constitutes a classic panic-driven sell-off completely detached from fundamental deterioration.
- Preserved Earnings Visibility: Full-year profit trajectories remain locked in at 30.4 trillion KRW for 1Q26F and 185 trillion KRW for FY26. Because earnings projections were left untouched while prices plunged, valuation multiples compressed severely to 1.96x forward P/B and 3.7x P/E.
- Pricing Defense and Demand Buffers: With the vast majority of demand tied to Big Tech—situated safely away from immediate conflict theaters—and consumer IT hardware already reflecting prior shipment reductions, abrupt demand destruction will remain muted despite wartime inflation pressures.
- Widening Structural Deficits: Projected 2026 wafer capacity expansions (DRAM +8.5%, NAND -1.0%) lag far behind estimated demand bit growth (DRAM +24.8%, NAND +14.8%), signaling an extended period of tight supply dynamics.
📝 Editor’s Comment (Perspective)
The analyst evaluates that the fundamental impact of geopolitical risks is expected to be limited, and that the steep downward price movement sparked by these tensions represents a textbook panic sell. With earnings targets intact, severely discounted multiples, and persistent supply deficits, initiating aggressive accumulation is deemed highly appropriate.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the realization of Q1 operating profit estimates (30.4 trillion KRW), the preservation of stable memory spot and contract prices, and the broader extension of tight supply conditions. These developments can be tracked through upcoming quarterly and annual earnings releases, official corporate IR materials, and regulatory disclosures 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)
