Market: KOSPI (000660)
Brokerage : Kiwoom Securities
Analyst : Yuhak Park
Investment Rating : BUY (Maintain)
Target Price : 1,300,000 KRW (Maintained)
Core Momentum : Sharp price increases in server DRAM and enterprise SSDs are expected to drive first-half earnings above market expectations, while HBM4 commercialization provides additional momentum for continued Q2 earnings growth.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,300,000 KRW / BUY (Maintain)
- Current Price (as of 4/8): 1,033,000 KRW (Upside potential: 25.8%)
- Market Capitalization: 736,221.5 billion KRW (Based on Stock Data)
- Key Financial Metrics (2023 / 2024 / 2025F / 2026F):
- Revenue: 32,766 billion KRW / 66,193 billion KRW / 97,147 billion KRW / 288,138 billion KRW
- Operating Profit: -7,730 billion KRW / 23,467 billion KRW / 47,206 billion KRW / 226,516 billion KRW
- EBITDA: 5,943 billion KRW / 36,049 billion KRW / 61,136 billion KRW / 241,411 billion KRW
- Net Income Attributable to Controlling Interests: -9,112 billion KRW / 19,789 billion KRW / 42,919 billion KRW / 178,719 billion KRW
- EPS: -12,517 KRW / 27,182 KRW / 58,955 KRW / 245,328 KRW
- PER: -11.3x / 6.4x / 11.0x / 4.2x
- PBR: 1.9x / 1.7x / 3.9x / 2.5x
- ROE: -15.6% / 31.1% / 44.2% / 85.7%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Earnings Outlook: Q1 revenue is projected at 53.1 trillion KRW (+62% QoQ) with operating profit reaching 40.3 trillion KRW (+110% QoQ), comfortably outperforming market consensus. Blended ASPs for both DRAM and NAND are expected to exceed expectations due to soaring server DRAM and eSSD prices, translating into divisional operating profits of 30.9 trillion KRW for DRAM and 9.4 trillion KRW for NAND.
- 2Q26 Earnings Outlook: Q2 performance is anticipated to maintain robust momentum with revenue of 74.5 trillion KRW (+40% QoQ) and operating profit of 60.2 trillion KRW (+50% QoQ). This strength will likely be propelled by ongoing price gains in server memory and the commercialization effects of HBM4.
- Market Sentiment & Valuation View: While earnings projections continue to climb, growing investor focus on potential down-cycle risks and margin contraction may cap the stock’s upside. Nevertheless, near-term upward consensus revisions and anticipation surrounding 2027 HBM4e contract pricing are expected to support share price rebounds.
📝 Editor’s Comment (Perspective)
The analyst evaluates that SK hynix is experiencing an aggressive earnings upgrade cycle significantly outpacing market forecasts, fueled by steep price increases in server DRAM and eSSD. This perspective highlights that despite growing investor caution regarding future cyclical downturns, near-term consensus momentum and expectations for next-generation product pricing will act as primary catalysts for the stock.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the realization of projected operating profits of 40.3 trillion KRW for Q1 and 60.2 trillion KRW for Q2, pricing trends in server DRAM and eSSD, and whether anticipation for 2027 HBM4e contract price hikes materializes into stock price recovery. 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.
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