Market: KOSPI (000660)
Brokerage : IBK Securities
Analyst : Unho Kim
Investment Rating : BUY (Maintained)
Target Price : 1,800,000 KRW (Maintained)
Core Momentum : AI server growth is expected to broaden memory demand from HBM into conventional DRAM and ultimately NAND, creating a full-stack demand structure that supports sustained earnings growth beyond traditional memory-cycle dynamics.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,800,000 KRW / BUY
- Current Price (as of 4/23): 1,225,000 KRW
- Market Capitalization: 873,060 billion KRW (KOSPI 6,475.81pt)
- Key Financial Metrics (2024 / 2025 / 2026F / 2027F / 2028F):
- Revenue: 66,193 billion KRW / 97,147 billion KRW / 324,169 billion KRW / 492,531 billion KRW / 644,093 billion KRW
- Operating Profit: 23,467 billion KRW / 47,206 billion KRW / 247,874 billion KRW / 366,144 billion KRW / 482,225 billion KRW
- Net Income Attributable to Controlling Interests: 19,789 billion KRW / 42,919 billion KRW / 228,540 billion KRW / 321,781 billion KRW / 414,260 billion KRW
- EPS: 27,182 KRW / 58,955 KRW / 319,933 KRW / 451,495 KRW / 581,252 KRW
- PER: 6.4x / 11.0x / 3.8x / 2.7x / 2.1x
- PBR: 1.7x / 3.9x / 2.5x / 1.3x / 0.8x
- ROE: 31.1% / 44.2% / 98.0% / 63.6% / 47.6%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Performance Summary: Revenue reached 52.576 trillion KRW (+60.2% QoQ). DRAM revenue rose 62.1% QoQ with B/G estimated at -1% and ASP at +63.0%, driven primarily by conventional products. NAND revenue increased 55.6% QoQ with B/G at -12.0% and ASP at 71.5%.
- World-Class Operating Margin: Operating profit for Q1 recorded 37.6 trillion KRW, translating to an operating margin of 71.5%. Segment operating margins were 77.0% for DRAM and 55.0% for NAND.
- 2Q26 Outlook: Revenue for Q2 is expected to reach 74 trillion KRW (+40.8% QoQ), and operating profit is projected to surge by 51.7% QoQ to 57 trillion KRW (an operating margin of 77.1%). Operating profit is expected to break down into 46.6 trillion KRW for DRAM and 10.4 trillion KRW for NAND.
- Disproving Cyclical Concerns: The memory market is expected to continue growing around AI servers through 2026. As memory transitions into a Full Stack structure, demand expanding from HBM to DRAM will pave the way for explosive growth in NAND demand.
📝 Editor’s Comment (Perspective)
The analyst evaluates that the memory market continues to grow centered around AI servers, and as memory transitions into a Full Stack structure, demand expands from HBM to DRAM, leading subsequently to explosive growth in NAND demand. This drives a sustained long-term boom phase, rendering traditional cyclical concerns meaningless. This perspective places emphasis on AI server-driven structural demand expansion and prolonged industry prosperity rather than short-term cyclical worries.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the realization of the projected 57 trillion KRW operating profit and 77.1% operating margin for Q2, price trends and ASP trajectories for DRAM and NAND, and the materialization of Full Stack structural transitions and explosive NAND demand growth driven by expanding AI server demand. 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)
