Market: KOSPI (000660)
Brokerage : Hanwha Investment & Securities
Analyst : Junyoung Park, RA Nawoo Kim
Investment Rating : Buy (Maintained)
Target Price : 1,630,000 KRW (Upgraded)
Core Momentum : Memory supply shortages and expanding HBM exposure are strengthening pricing power and profitability, while LTAs are expected to reduce future earnings volatility and support a transition toward structurally sustainable earnings.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,630,000 KRW / Buy
- Current Price (as of 4/23): 1,225,000 KRW (Upside potential: 33.1%)
- Market Capitalization: 87,306 billion KRW (Common stock)
- Key Financial Metrics (2024A / 2025 / 2026E / 2027E):
- Revenue: 66,193 billion KRW / 97,147 billion KRW / 321,706 billion KRW / 471,493 billion KRW
- Operating Profit: 23,467 billion KRW / 47,206 billion KRW / 240,841 billion KRW / 367,484 billion KRW
- EBITDA: 36,049 billion KRW / 61,136 billion KRW / 259,513 billion KRW / 391,318 billion KRW
- Net Income Attributable to Controlling Interests: 19,789 billion KRW / 42,919 billion KRW / 196,561 billion KRW / 279,323 billion KRW
- EPS: 27,182 KRW / 58,955 KRW / 284,672 KRW / 404,532 KRW
- Net Debt: 13,554 billion KRW / -242 billion KRW / -142,971 billion KRW / -369,431 billion KRW
- PER: 45.1x / 20.8x / 4.3x / 3.0x
- PBR: 12.1x / 7.4x / 2.8x / 1.5x
- EV/EBITDA: 24.6x / 14.3x / 2.8x / 1.3x
- Dividend Yield: 0.2% / 0.2% / 0.2% / 0.2%
- ROE: 31.1% / 44.2% / 90.3% / 61.6%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Performance Summary: 1Q26 revenue reached 52.6 trillion KRW (+60% QoQ, +198% YoY) and operating profit recorded 37.6 trillion KRW (+96% QoQ, +405% YoY), breaking record highs for a single quarter.
- Segment Performance & ASP Trends: DRAM operating margin is estimated at around 78% and NAND operating margin at 50%. DRAM ASP rose 64% QoQ and NAND ASP jumped 73% QoQ. The higher DRAM ASP growth relative to domestic peers is attributed to its larger HBM portion.
- Supply Environment and Structural Shift: Unprecedented memory shortages and AI-driven demand have elevated memory makers’ bargaining power, with the company actively addressing client requests for long-term agreements (LTAs).
- Future Outlook: Amid supply constraints, even if a downturn approaches, earnings volatility is expected to be minimal. Greater emphasis is placed on earnings ‘sustainability’ rather than mere earnings ‘magnitude,’ warranting a corporate re-rating that reflects these fundamental industry changes.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a preferred large-cap alternative within the semiconductor sector, transitioning away from historical earnings volatility toward a business model capable of sustainably generating high profits backed by LTAs and HBM. This perspective places greater emphasis on earnings sustainability and reduced volatility during potential future downturns rather than the magnitude of short-term earnings swings.
To determine whether this investment thesis is unfolding as projected, key items to monitor include whether client requests and execution of long-term supply agreements (LTAs) translate into sustained earnings stability and cash flows, and whether high-value profitability is preserved under supply constraints. 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.
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