Creditors: Hynix has barely overcome its management crisis. LG, I’m sorry, but do you have any intention of buying Hynix?
LG: Yes, I won’t buy it~ ^^
Creditors: LG, I have nowhere else to live but you. Please buy me a Hynix.
LG: Yeah, I’m not buying it~ haha
Creditors: Hyosung decided to buy Hynix, but eventually gave up. Please, LG, buy it for us. ㅠㅠ
LG: Yeah, I’m not buying it~ haha
Creditors: LG, Hynix is finally making an operating profit. Buy me some this time.
LG: Yes, I don’t~ haha.
And now, 15 years later,
The fate of SK and LG groups has changed.
Hynix market cap: KRW 407 trillion, 41st in the world (42nd, Cisco, 43rd, IBM)
Nomura Securities’ latest Hynix performance forecast: operating profit expected to be KRW 128 trillion in 2027
Super cycle to continue through 2027(F) with limited supply expansion through 2027(F), growing to unprecedented sales levels
Acceleration in industry-wide cleanroom availability is expected to occur in mid-2027(F), and meaningful acceleration in production growth will begin in late 2027(F). Therefore, the super cycle that started in 2023 is expected to last until 2027(F) and reach unprecedented levels of sales.
Reflecting this outlook, we revise the operating profit (OP) forecasts for 2026 (F) and 2027 (F) by 38% and 46%, respectively, to KRW 99 trillion and KRW 128 trillion (ROE forecasts: 52% and 42%).
Target price (TP) raised to 840,000 won, ‘Buy’ rating maintained (target P/B 3x)
Hynix is expected to achieve significant cash reserves and book value improvement over the next two years, driven by ROE reaching 40-50%. By the end of 2027(F), book value is expected to reach 296 trillion won, almost double the current level. Reflecting the raised ROE outlook and strengthening financial soundness, we raise the 12-month forward target PBR (price-to-book ratio) to 3x (from 2.5x) and the target price (TP) from KRW 540,000 to KRW 840,000.