Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Investment Thesis and Target Price
Mirae Asset Securities maintains a Buy investment rating and a Target Price of 370,000 KRW (~$261.12 USD based on 1417 KRW/USD). Despite a significant decline from peak prices due to profit-taking and supply-demand pressures, the brokerage asserts that the fundamental operating environment and industry outlook remain unchanged. The current valuation is viewed as an attractive entry point for increasing weight, with the 12-month forward P/B and P/E multiples having dropped to 1.6x and 3.9x, respectively, levels seen prior to the AI cycle. The valuation is supported by the expectation that Capex from major hyperscalers will continue to grow for over three years.
Earnings Estimates and Financial Preview
Operating profit is estimated at 119.8 trillion KRW (~$84.55B USD) for 3Q26F, 126.0 trillion KRW (~$88.92B USD) for 4Q26F, and 558.9 trillion KRW (~$394.43B USD) for the full year 2027F. For the full year 2026F, operating profit is projected at 392,521 billion KRW (~$276.93B USD), slightly exceeding the market consensus of 391,130 billion KRW. Revenue for 2027F is forecasted to reach 979.3 trillion KRW (~$691.18B USD). Regarding shareholder returns, if 50% of Free Cash Flow (FCF) is returned between 2024-2026, the 2026 return rate is estimated at 6.8-9.5% for Common Stock and 9.1-12.7% for preferred shares.
Key Semiconductor Drivers and Outlook
The growth trajectory is expected to be driven by ASP increases in memory products. DRAM ASP is projected to rise QoQ by +15%, +5%, and +22% respectively, with High Bandwidth Memory (HBM) pricing leading the increase even as general-purpose product growth slows. NAND Flash ASP is expected to grow by +15%, +5%, and +13% (reflecting potential adjustments in 2027). A key long-term competitive advantage is the company’s full-stack manufacturing capability, combining Foundry and Memory, as evidenced by the internalization of the HBM4 base die. In the Foundry sector, while currently loss-making, the start of 2nm supply to Tesla in 2027 is expected to secure mass production references and expand market share in the advanced process node market.
🔗 Original Source: View the official filing/article here.