Market: KOSPI (000660)
Brokerage : Eugene Investment & Securities
Analyst : Sojung Yim
Investment Rating : BUY (Maintained)
Target Price : 990,000 KRW (Raised)
Core Momentum : Diversification of AI computing architectures across GPUs, CPUs, and ASIC accelerators is expected to structurally expand high-end memory demand centered on HBM, supporting industry-leading profitability and a sustained valuation premium.
📊 1. [Valuation & Key Financial Metrics]
- Target Price: 990,000 KRW (Based on Target P/B 3.5x applied to 2026F BPS, Raised)
- Investment Rating: BUY (Maintained)
- 2026F Financial Outlook: Revenue 190.30 trillion KRW, Operating Profit 115.82 trillion KRW, Net Income 93.70 trillion KRW
- EPS: 128,671 KRW (2026E)
- Valuation Multiples: PER 5.8x, PBR 2.6x, EV/EBITDA 3.6x, ROE 58.0% (Based on 2026E)
🚀 2. [Market Opportunities & Business Outlook]
- 4Q25 Preview: Revenue is expected to reach 34.5 trillion KRW (+75% YoY, +41% QoQ) and operating profit 20.1 trillion KRW (+148% YoY, +76% QoQ), beating consensus estimates by +12% and +24%, respectively. Annual operating margin, previously in the mid-40% range, is projected to exceed 60% by 2026, marking the strongest profitability among the top three memory players.
- Product & Demand Outlook: While HBM revenue proportion may decline slightly QoQ due to sharp rebounds in legacy DRAM prices, HBM revenue share is projected to maintain the mid-to-high 30% range backed by steady demand for next-gen and custom HBM.
- AI Ecosystem Expansion: As the expansion speed of CPU and ASIC-based accelerator ecosystems entering the AI server market accelerates, high-end memory demand based on diverse computing architectures beyond GPUs is expected to enter a structural growth phase over the mid-to-long term.
- Valuation Perspective: Valuation upside driven by generic DRAM price increases—currently a key market momentum—is limited. However, a premium is justified given the expansion of high-end memory demand centered on HBM and the resulting profitability improvements.
📝 Editor’s Comment (Perspective)
The analyst views SK hynix as an enterprise delivering overwhelming profitability driven by expanded high-end memory demand centered on HBM, enjoying structural growth amid a diversifying AI ecosystem. The analyst highlights high-end differentiation and strong earnings power that go beyond generic price uptrends.
To verify this investment thesis, one should track whether 4Q25 earnings meet expectations (revenue of 34.5 trillion KRW, operating profit of 20.1 trillion KRW), if the HBM revenue share stably maintains the mid-to-high 30% range, and how CPU/ASIC accelerator ecosystem expansions translate into actual solid high-end memory demand. 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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