Market: KOSPI (000660)
Brokerage : Hana Securities
Analyst : Rokho Kim (RA: Younggyu Kim)
Investment Rating : BUY (Maintained)
Target Price : KRW 350,000 (Maintained)
Core Momentum : Strong client positioning and technological competitiveness are expected to support favorable 2026 HBM supply and profitability despite intensifying competition, while improving DRAM and NAND pricing provides a stable earnings foundation.
📊 1. [Valuation & Key Financial Metrics]
- Target Price & Rating: Maintained a 6-month target price of KRW 350,000 and a BUY investment rating.
- Q2 2025 Earnings Performance: Q2 2025 revenue reached KRW 22.2 trillion (YoY +35%, QoQ +26%) and operating profit hit KRW 9.2 trillion (YoY +68%, QoQ +24%).
- Key Financial Metrics (2025F / 2026F):
- Revenue: KRW 83.4222 trillion (2025F) / KRW 94.0201 trillion (2026F)
- Operating Profit: KRW 36.0648 trillion (2025F) / KRW 43.4946 trillion (2026F)
- Net Income (Parent): KRW 30.5491 trillion (2025F) / KRW 34.8934 trillion (2026F)
- EPS: KRW 41,963 (2025F) / KRW 47,930 (2026F)
- P/E: 6.41x (2025F) / 5.61x (2026F)
- P/B: 1.66x (2025F) / 1.41x (2026F)
- ROE: 34.55% (2025F) / 29.17% (2026F)
🚀 2. [Market Opportunities & Business Outlook]
- Q2 2025 Earnings Background: Both DRAM and NAND shipments exceeded expectations due to robust demand for AI-related HBM, high-spec DDR5, and eSSDs, compounded by preemptive inventory building driven by tariff concerns. Blended DRAM prices rose 1% QoQ despite a lower HBM portion, driven by general DRAM price increases.
- Q3 2025 Preview: Q3 2025 revenue is projected at KRW 22.6 trillion and operating profit at KRW 9.6 trillion, with shipment growth expected to be limited due to inventory gaps from Q2. DRAM prices will maintain an upward trend amid tight supply-demand balances, though gains will likely remain around 3%, while NAND prices are expected to stabilize and halt declines due to conservative supplier utilization policies.
- Securing 2026 HBM Visibility: Concerns are rising over intensifying HBM competition and potential dilution of the HBM premium. To dispel these concerns, securing visibility into 2026 HBM is deemed necessary. Given its solid standing among major clients and technological edge, favorable supply conditions are anticipated compared to market anxieties. Furthermore, the possibility of confirming differentiation points against competitors at the onset of mass production within the year cannot be ruled out. As both DRAM and NAND prices transition upward to sustain solid earnings, and considering the potential resolution of HBM-related uncertainties, current share prices are not perceived as burdensome.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as delivering solid earnings supported by increased Q2 shipments, while emphasizing that securing 2026 HBM visibility is essential to overcoming concerns regarding intensifying HBM competition. The perspective focuses on whether solid client positioning and technological leadership effectively translate into competitive advantages despite short-term shipment pacing and shifting HBM premiums.
To determine whether this investment thesis is unfolding as expected, key items to monitor include the confirmation of differentiation points against competitors starting from mass production schedules within the year, and the concrete securing of 2026 HBM supply visibility and profitability. These metrics can be tracked through upcoming quarterly and annual earnings releases, company IR materials, and regulatory filings via DART.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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