Accessible version Global Memory Tech More optimistic on Hynix, Samsung and Nanya Tech; lift POs to new highs Price Objective Change Year-end data points: solid ASP, rush order, tight supply Three key takeaways from our year-end channel check for global memory: (1) stronger DRAM contract price, (2) rising rush orders, and (3) tighter DRAM/NAND supply. We also learned that most Tier-1 OEMs have agreed on 30%+/15%+ QoQ conventional DRAM price increase for 4Q25/1Q26. This is consistent with Micron's bullish gu ...

Summary of SK Hynix Inc. (000660.KS) Conference Call Company Overview - **Company**: SK Hynix Inc. (000660.KS) - **Market Cap**: W393.9 trillion / $274.1 billion - **Enterprise Value**: W399.0 trillion / $277.7 billion - **Current Price**: W558,000 - **Target Price**: W700,000 - **Upside Potential**: 25.4% [1][2][5] Key Industry Insights Memory Market Dynamics - **Memory Upcycle**: Anticipated to be one of the strongest upcycles through 2026, driven by increased AI spending from hyperscalers [1][20] - **Demand vs. Supply**: Memory demand from servers (including server DRAM, SOCAMM, HBM, and eSSD) is expected to significantly outpace supply, with server-related DRAM demand projected to grow 34% year-over-year [1][33] - **Conventional DRAM Pricing**: Pricing for conventional DRAM is expected to rise sharply, with a forecasted increase of 47% year-over-year in 2026 [49] Specific Demand Drivers - **SOCAMM Demand**: Expected to reach 20 billion Gb (+300% year-over-year) in 2026, representing approximately 5% of global DRAM demand [26][28] - **Server DRAM Demand**: U.S. hyperscalers are driving demand for server DRAM, with some customers requesting nearly double the volume year-over-year [21][33] - **HBM Demand**: HBM demand is projected to grow significantly, with total HBM demand expected to reach 4,328,691 GB by 2026, a 60%+ year-over-year increase [80] Financial Projections Revenue and Profitability - **2026E Revenue**: Expected to reach W140.9 trillion, up from W94.3 trillion in 2025E [5][16] - **Operating Profit**: Projected to more than double for conventional DRAM to $36 billion in 2026E, contributing to a company-wide operating profit estimate that is ~20% higher than consensus [2] - **Free Cash Flow**: Anticipated to exceed W60 trillion over the next three years, supported by the strong memory upcycle [2] Valuation Metrics - **P/B Ratio**: Target P/B multiple increased to 2.8X from 1.8X, reflecting the expected strong memory upcycle [3] - **ROE**: Expected to exceed 30% in 2024 and expand to over 40% in 2025E/2026E [3][11] Risks and Considerations - **Supply Constraints**: Limited capacity additions in conventional DRAM are expected throughout 2026, with major suppliers focusing on high-value segments [44] - **Pricing Pressure**: While HBM pricing is expected to decline, stronger demand is anticipated to offset this decline [81] Conclusion - **Investment Recommendation**: Upgrade to Buy with a target price of W700,000, indicating a strong potential upside based on robust demand forecasts and limited supply growth in the memory market [1][2][3]

Group 1 - Micron Technology has surpassed the critical resistance level of $102.50 and is trading above the 2024 top price zone, indicating a significant structural change in the market [1] - The market has not yet fully grasped the scale of this structural change, suggesting potential for further growth or volatility in Micron's stock [1] Group 2 - The author of the analysis has a strong background in investment management and technical analysis, focusing on equities, fintech, and macro trends [1] - The author has achieved notable success in stock market tournaments, with verified returns exceeding 190% in traditional markets within a month [1]