Goldman Sachs: SK Hynix (000660.KS): Key Takeaways from Post-Earnings Virtual Group Meeting
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Goldman Sachs hosted a virtual group meeting with SK Hynix following its earnings release. Key takeaways confirm persistent memory supply tightness and a favorable pricing environment. SK Hynix indicated that PC and mobile clients struggle to secure sufficient capacity, while server customer inventory continues to decline.
The HBM4 timeline remains unchanged, targeting mass shipments in the second half of 2026. The company adopts a long-term capacity allocation strategy rather than prioritizing short-term profits. SOCAMM2 mass production has begun using 1cnm LPDDR5X for the Vera Rubin platform, delivering double the bandwidth and over 75% better energy efficiency.
SK Hynix reiterated that capital expenditures will increase significantly this year, driven by Yongin fab construction and M15X capacity expansion. Goldman Sachs raised its capex forecasts for 2026-2028 to KRW 44 trillion, 53 trillion, and 55 trillion, respectively. Long-term supply agreement discussions are ongoing.
Goldman Sachs reaffirmed its Buy rating with a 12-month target price of KRW 1,800,000, based on 2.9x 2026/2027E average P/B. This implies 38.5% upside. Expected P/E ratios stand at 4.3x, 3.5x, and 3.2x for 2026-2028. Risks include demand weakness and technology migration delays.