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: 3,100,000 KRW (~$2,322 USD based on 1335 KRW/USD)
- Core Thesis: Valuation remains absolutely low relative to 27F EPS and BPS, with limited downside and strong long-term demand catalysts.
Investment Thesis and Target Price
Mirae Asset Securities maintains a Buy rating and a Target Price of 3,100,000 KRW (~$2,322 USD based on 1335 KRW/USD). The analyst notes that the current stock price is trading at an absolutely low level, representing 2.8x 27F EPS and 1.7x BPS. Even when converted to the target price, these multiples are only 5.7x and 3.6x respectively, suggesting that the downside risk is limited.
Earnings Estimates and Financial Preview
The brokerage has revised its operating profit forecasts upward by 6% for 4Q26 and 14% for 2027:
- 4Q26F Operating Profit: 108 trillion KRW (~$80.9B USD), representing a Quarter-over-Quarter (QoQ) increase of 30%.
- 2027F Operating Profit: 489 trillion KRW (~$366.3B USD), representing a Year-over-Year (YoY) increase of 69%.
Regarding 3Q26 performance, DRAM and NAND Flash shipments (B/G) recorded +9.7% and -0.8% respectively. Average Selling Prices (ASP) for both segments rose in the mid-to-high 20% range.
Key Semiconductor Drivers and Catalysts
The report identifies several critical technological and operational catalysts:
- DRAM Growth: Strong shipment performance was driven by increased sales of High Bandwidth Memory (HBM) 4 and DDR5 for server applications.
- NAND Strategy: While overall NAND shipments decreased slightly, sales were concentrated on 321-layer eSSD products.
- Future Outlook: For 4Q26, DRAM B/G is expected to increase by the mid-20% range, supported by the expansion of the 1c process and the ramp-up of the M15X facility.
🔗 Original Source: View the official filing/article here.