Disclaimer: This article is for informational purposes only and does not constitute financial advice.
📌 Key Research Highlights
- Broker: Mirae Asset Securities
- Investment Rating: Buy
- Target Price: 400,000 KRW (~$300 USD based on 1334 KRW/USD)
- Core Thesis: Absolute undervaluation relative to 2027F EPS and BPS, supported by record-breaking quarterly operating profits exceeding 100 trillion KRW.
Investment Thesis and Target Price
Mirae Asset Securities maintains a Buy rating and a Target Price of 400,000 KRW (~$300 USD based on 1334 KRW/USD). The analyst posits that the current stock price is absolutely low, trading at 3.2x 27F EPS and 1.2x BPS. Even when calculated against the target price, these multiples are only 5.4x and 2.5x respectively, suggesting that the downside risk is limited.
Earnings Estimates and Financial Preview
The company achieved a significant milestone in 3Q26 with revenue of 195.3 trillion KRW (~$146.4B USD, QoQ +14%) and operating profit of 107.4 trillion KRW (~$80.5B USD, QoQ +20%). The analyst notes that excluding approximately 10 trillion KRW (~$7.5B USD) in foreign exchange losses, the profit would have been in the 120 trillion KRW range under normal conditions. Internal revenue reached a record high of 16 trillion KRW (~$12B USD, YoY +115%) driven by memory price increases, although the DX division saw an OPM decline of 8.8%p YoY.
Future estimates are highly bullish, with 4Q26F operating profit projected at 139 trillion KRW (~$104.2B USD, QoQ +29%) and 27F annual operating profit estimated at 622 trillion KRW (~$466.3B USD, YoY +58%).
Key Semiconductor Drivers and Catalysts
The growth is primarily driven by strong momentum in memory pricing and volume. In 3Q26, Bit Growth (B/G) increased by 3% for DRAM and 5% for NAND Flash, while Average Selling Prices (ASP) rose by 19% for DRAM and 18% for NAND Flash. A critical catalyst is the rapid expansion of High Bandwidth Memory (HBM); HBM4 revenue grew more than 3x QoQ, now accounting for approximately 60% of total HBM revenue.
For 4Q26F, the analyst forecasts continued strength with DRAM B/G +17% (ASP +10%) and NAND Flash B/G +15% (ASP +10%). Operating Profit Margins (OPM) are expected to remain high at 82% for DRAM and 67% for NAND Flash.
🔗 Original Source: View the official filing/article here.