Source Fact: Daishin Securities / June 25, 2026
Investment Opinion & Target Price: BUY (Maintain) / 560,000 KRW
Core Momentum: Steeper memory price hikes and an aggressive upward revision of 2027 operating profit projections driven by a 65% surge in HBM ASP
📊 1. [Section Title: Valuation and Investment Metrics Analysis]
- Target Price & Rating: Sustained a ‘BUY’ rating and kept the 6-month target price locked at 560,000 KRW, indicating substantial upside potential from the current price of 340,500 KRW (as of June 24, 2026).
- Upward Profit Revisions:
- The 2027 annual operating profit projection has been officially upgraded from the previous estimate of 50.3 trillion KRW to a new high of 53.2 trillion KRW.
- This adjustment models a core assumption that 2027 HBM ASP (Average Selling Price) will soar by 65% year-over-year.
- Market Position & Valuation Framing: Recent stock market volatility has triggered premature debates regarding a valuation peak; however, strong structural supply-demand deficits indicate that the underlying pricing power remains completely intact.
- Cash Flow Potential: Full-year Free Cash Flow (FCF) before M&A deductions is projected to comfortably exceed 30.0 trillion KRW, providing a massive capital foundation to support both share buybacks/cancellations and aggressive non-memory M&A tracks.
🚀 2. [Section Title: Target Addressable Market (TAM) & Detailed Earnings Estimates]
- 2Q26 Earnings Outlook:
- Operating Profit Projection: Estimated at 8.2 trillion KRW (Consensus: 8.68 trillion KRW).
- One-Time Frictions: The slight miss against consensus lines is strictly an isolated, one-time phenomenon driven by larger-than-expected incentive provision expenses within the DS (Device Solutions) division, where operating profit is tracked in the high 1.0 trillion KRW range.
- Memory Market Dynamics:
- Capital expenditure hikes from primary customers alongside highly restricted production capacity expansions are sharpening the supply-demand deficit, creating a steeper trajectory for near-term memory price hikes.
- The market environment is highly likely to reproduce the intense HBM-driven DRAM pricing uptrends previously experienced between 2H23 and 1H25.
- Segment Diversification & Synergy Catalysts:
- Foundry Segment: Upside potential is secured via advanced node yield optimization and foundry capacity additions that lag client demand growth, paving the way for premium pricing power and extra contract wins.
- Non-Memory & Custom Pipelines: The company is aggressively scaling its addressing capabilities beyond traditional mobile AP structures into HBM Base Dies, Automotive computing, and specialized ASIC systems.
📝 Editor’s Comment (by K-STOCK Editor)
Listen up, bulls! The bears are out here crying about a valuation peak just because the stock hit a little patch of choppy water, but they are completely blind to the absolute fortress this company is building. The Q2 operating profit print might look slightly soft at 8.2 trillion KRW, but that is literally just a temporary speed bump because the company paid out a massive stack of incentive bonuses to the DS squad—that’s a one-time line item, not a system failure. The real explosive juice is that the data sheets are projecting a massive 65% year-over-year spike in 2027 HBM ASP, forcing analysts to aggressively jack up the 2027 operating profit target to a staggering 53.2 trillion KRW. We are staring down a massive 30-trillion KRW free cash flow war chest that is going to fuel serious share buybacks, cancellations, and monster M&A deals. While paper hands get shaken out by short-term noise, the smart money knows that the upcoming HBM4 transition and advanced foundry contract wins are going to send this ticker into hyper-drive. True diamond hands are looking right past the noise and loading up for the 560,000 KRW moonshot. Don’t let them trick you out of your position!
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