Market: KOSPI (000660)
Brokerage : Kyobo Securities
Analyst : Boyoung Choi
Investment Rating : Buy (Maintain)
Target Price : KRW 4,000,000 (Maintain)
Core Momentum : Expanded HBM4 and 1c-node product shipments are expected to improve both volume and product mix and sustain second-half earnings growth, while LTAs with key clients secure mid-to-long-term demand visibility.
📊 1. [Valuation & Key Financial Metrics]
- Stock Performance & Investment Rating
- Investment Rating: Buy (Maintain)
- Target Price: KRW 4,000,000 (Maintain)
- Current Price (As of 07/29): KRW 1,401,000
- Upside Potential: 185.5%
- Valuation Multiples
- Annual P/E Trend: Dec 2024 6.4x → Dec 2025 11.0x → Dec 2026E 4.4x → Dec 2027E 2.8x → Dec 2028E 2.5x
- Annual P/B Trend: Dec 2024 1.7x → Dec 2025 3.9x → Dec 2026E 2.9x → Dec 2027E 1.4x → Dec 2028E 0.9x
- Annual EV/EBITDA Trend: Dec 2024 3.8x → Dec 2025 7.6x → Dec 2026E 3.2x → Dec 2027E 1.4x → Dec 2028E 0.5x
- Key Financial Forecasts
- Dec 2024: Revenue KRW 66.19T, Operating Profit KRW 23.47T, Net Profit KRW 19.80T, EPS KRW 27,182, ROE 31.1%
- Dec 2025: Revenue KRW 97.15T, Operating Profit KRW 47.21T, Net Profit KRW 42.95T, EPS KRW 58,955, ROE 44.2%
- Dec 2026E: Revenue KRW 337.60T, Operating Profit KRW 263.30T (OPM 78.0%), Net Profit KRW 228.91T, EPS KRW 320,975, ROE 97.8%
- Dec 2027E: Revenue KRW 499.08T, Operating Profit KRW 413.17T (OPM 82.8%), Net Profit KRW 360.43T, EPS KRW 505,382, ROE 68.5%
- Dec 2028E: Revenue KRW 547.83T, Operating Profit KRW 457.17T (OPM 83.5%), Net Profit KRW 403.22T, EPS KRW 565,389, ROE 44.5%
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review
- 2Q26 revenue reached KRW 79.3T (QoQ +51%) and operating profit recorded KRW 60.5T (QoQ +61%), marking five consecutive quarters of record-high operating profit.
- Operating margin rose to 76% propelled by higher shipments, price increases, and cost reductions across both DRAM and NAND, demonstrating solid performance despite the postponement of some high-value product shipments to the second half.
- Estimated metrics indicate DRAM B/G +6%, ASP +30%, and operating profit of KRW 48.2T (OPM 83.0%), alongside NAND B/G +13%, ASP +49%, and operating profit of KRW 13.1T (OPM 66.0%), with sharp price surges leading earnings growth over mere volume growth.
- Second-Half Earnings Momentum & LTA Achievements
- In the second half, volume and product mixes are expected to improve simultaneously through expanded shipments of HBM4 and 1c-node based products.
- Mass production and shipments of HBM4 commenced in Q2, with full-scale production ramp-up scheduled for the second half; furthermore, long-term agreements (LTAs) have been finalized with approximately 10 key clients, securing mid-to-long-term demand visibility.
- Considering the widespread proliferation of AI services and sustained infrastructure investments by CSPs, second-half earnings growth momentum is projected to persist.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a leading semiconductor enterprise maintaining robust earnings growth backed by expanded HBM4 mass production, rising shipments of 1c-node server DRAM, and enhanced mid-to-long-term demand visibility through finalized LTAs. This perspective places greater emphasis on the structural durability of the memory cycle, second-half earnings growth, and anticipated additional shareholder return announcements within the year as catalysts for stock recovery, rather than short-term market corrections driven by rising Chinese memory competition or big-tech credit risk concerns.
To verify whether this investment thesis unfolds as expected going forward, it is necessary to track whether full-scale mass production and shipments of HBM4 and 1c-node products translate into actual earnings enhancements, whether the finalized LTAs with key clients solidify visible mid-to-long-term demand, and whether additional shareholder return policies are formally announced and executed within the year. Such changes can be verified through future quarterly earnings releases, official company IR materials, and regulatory filings.
📢 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.
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