Market: KOSPI (000660)
Brokerage : Yuanta Securities
Analyst : Gil-hyun Baek, Hyun-ju Park
Investment Rating : BUY (Maintain)
Target Price : KRW 260,000 (Maintain)
Core Momentum : Driven by solid demand for high-value products and expanding shipments of HBM3e 12-high, 1H25 operating profit is projected to reach KRW 16 trillion, following 1Q25 operating profit beating market consensus.
📊 1. [Valuation & Key Financial Metrics]
- Stock Price & Target Price: Stock Price (4/24) KRW 178,300, Target Price KRW 260,000 (Maintained), Upside Potential 46%
- Market Cap & Supply Metrics: Market Capitalization KRW 129,802.8 billion, Total Shares 728,002,365, Foreign Ownership 53.32%, Dividend Yield 1.27%
- Key Financial Projections (K-IFRS Consolidated):
- 2024A Revenue: KRW 66,193 billion, Operating Profit: KRW 23,467 billion, Net Income: KRW 19,789 billion
- 2025F Revenue: KRW 88,721 billion, Operating Profit: KRW 36,750 billion, Net Income: KRW 35,985 billion
- Valuation & Financial Metrics:
- P/E (25F): 3.6x, P/B (25F): 1.1x, EV/EBITDA (25F): 2.5x, ROE (25F): 38.8%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q25 Earnings Review: Revenue reached KRW 17.6 trillion (YoY +42%, QoQ -11%) and operating profit KRW 7.4 trillion (OPM 42%, YoY +158%, QoQ -8%), beating market consensus (Revenue KRW 17.3 trillion, Operating Profit KRW 6.6 trillion).
- DRAM & NAND Division Trends:
- DRAM recorded revenue of KRW 14.2 trillion and operating profit of KRW 7.2 trillion (OPM 51%), supported by robust demand centered on high-capacity server DRAMs like 96GB DDR5 despite traditional seasonal off-peak effects.
- NAND recorded revenue of KRW 3.2 trillion and operating profit of KRW 0.2 trillion. Despite the transition to an operating loss in SK hynix’s standalone NAND due to consumer seasonality, Solidigm’s high-capacity eSSD demand (>61TB) remained solid.
- 2Q25 Preview: Operating profit is projected at KRW 8.9 trillion (OPM 42%, YoY +62%, QoQ +19%), exceeding the market consensus of KRW 7.9 trillion.
- Growth Drivers: Favorable exchange rate conditions, expansion of HBM3e 12-high product shares, and customer pull-in demand anticipating potential US tariff implementations, resulting in higher-than-expected shipment volumes.
📝 Editor’s Comment (Perspective)
The analyst evaluates SK hynix as a company securing exceptional earnings visibility driven by robust high-value product competitiveness and expanding sales proportions of HBM3e 12-high. However, reflecting macro uncertainties including US tariff policies and 2H25 IT set demand, the analyst adjusted the 12M Forward Target PBR downward from 1.8x to 1.6x while maintaining the target price, reflecting a cautious yet solid outlook.
To determine whether this investment thesis is actually playing out, investors should closely monitor whether the 1H25 operating profit reaches KRW 16 trillion, whether profitability is sustained via expanded shipments of HBM3e 12-high products, and how US semiconductor tariff policies and AI server demand materialize. These indicators can be tracked through upcoming quarterly and annual earnings releases, official IR materials, and regulatory filings.
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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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