Market: KOSPI (000660)
Brokerage : Yuanta Securities
Analyst : Gilhyun Baik (RA: Seokmin Lim)
Investment Rating : BUY (Maintained)
Target Price : 1,169,000 KRW (Raised)
Core Momentum : Expanding AI inference workloads are driving explosive demand for high-performance enterprise SSDs and high-capacity DRAM, while rising memory prices strengthen profitability and free cash flow available for shareholder returns.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,169,000 KRW (Based on Target PBR 2.66x to 2027F BPS, Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 208.46 trillion KRW, Operating Profit 139.25 trillion KRW, Net Income 99.07 trillion KRW
- Valuation Multiples: PER 6.3x, PBR 2.8x, EV/EBITDA 3.5x, ROE 60.3% (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Review: Revenue reached 32.8 trillion KRW (+66.1% YoY, +34.3% QoQ) and operating profit hit 19.2 trillion KRW (OPM 58.4%, +137.2% YoY, +68.4% QoQ), beating consensus estimates. Growth was driven by high-capacity DRAM like RDIMM and high-performance Enterprise SSDs.
- 1Q26 Preview: Operating profit is projected at 25.6 trillion KRW (OPM 63.3%) on revenue of 40.4 trillion KRW, well above market consensus. QoQ ASP growth rates for DRAM and NAND are estimated at +20.0% and +25.0%, respectively.
- Market Opportunities: Price uptrends are exceeding expectations amid supply constraints, while surging AI inference intensity rapidly expands demand for high-performance eSSD.
- Competitiveness & Returns: Despite market concerns regarding next-gen HBM competition, the company maintains leadership in the customized DRAM market and is expected to deliver favorable shareholder return directions backed by solid FCF.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as a company capturing explosive demand for high-performance eSSD and high-capacity DRAM amid AI inference expansion, while securing robust cash generation capabilities through memory price increases. The analyst emphasizes pricing momentum and FCF-driven shareholder return expectations.
To verify this investment thesis, one should track whether 1Q26 results exceed expectations with revenue surpassing 40 trillion KRW and operating profit hitting 25.6 trillion KRW, if robust ASP hikes across DRAM and NAND translate directly into bottom-line expansion, and how solid FCF fuels tangible shareholder return policies. These metrics can be monitored through upcoming quarterly reports, official 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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