Market: KOSPI (000660)
Brokerage : Kiwoom Securities
Analyst : Yuak Park
Investment Rating : BUY (Maintain)
Target Price : 1,050,000 KRW (Raised)
Core Momentum : Strong server DRAM and enterprise SSD demand amid constrained supply is driving substantial price increases across commodity DRAM and NAND, supporting significant earnings upgrades and a Q1 performance above market expectations.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 1,050,000 KRW (Raised)
- Investment Rating: BUY (Maintain)
- 2026F Financial Outlook: Revenue 203.75 trillion KRW, Operating Profit 140.03 trillion KRW, Net Income 111.51 trillion KRW
- EPS: 153,102 KRW (2026F)
- Valuation Multiples: PER 5.6x, PBR 2.8x, EV/EBITDA 0.6x, ROE 65.0% (Based on 2026F)
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Earnings Preview: Revenue is expected to reach 41.5 trillion KRW (+26% QoQ) and operating profit 28.0 trillion KRW (+46% QoQ), significantly beating market consensus (Revenue 37.9 trillion KRW, OP 22.5 trillion KRW). Operating profit by division is estimated at 22.6 trillion KRW for DRAM and 5.5 trillion KRW for NAND.
- Industry Tailwinds: Competitor node migrations, 9th-gen NAND transition, surging server eSSD demand, and rising server DRAM demand are fostering favorable pricing negotiations.
- 2026 Full-Year Outlook: Annual forecasts are revised upward to 204 trillion KRW in revenue (+110% YoY) and 140 trillion KRW in operating profit (+197% YoY). Blended ASP growth for DRAM is revised from +76% to +112%, and NAND from +50% to +103% YoY. HBM revenue and operating profit are also projected to surge ~40% YoY.
- Supply & Pricing Pressures: Generic DRAM is experiencing price uptrends amid low channel inventories, while clients are absorbing product price hikes, indicating minimal downside price pressure in the near term.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as an enterprise achieving explosive earnings expansion—targeting 140 trillion KRW in annual operating profit for 2026—propelled by upward revisions in generic DRAM and NAND pricing alongside robust growth in the HBM division. The analyst emphasizes the ongoing price appreciation cycle and favorable supply conditions.
To verify this investment thesis, one should track whether 1Q26 operating profit hits 28 trillion KRW to beat consensus, if the upward-revised DRAM and NAND pricing outlooks materialize in actual quarterly results, and how server eSSD and HBM4 pricing negotiations unfold. These indicators can be monitored through upcoming quarterly reports and regulatory filings via DART.
📢 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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