Market: KOSPI (000660)
Brokerage : Kyobo Securities
Analyst : Choi Bo-young
Investment Rating : BUY (Maintained)
Target Price : KRW 4,000,000 (Upgraded)
Core Momentum : Expanding agentic AI adoption is expected to broaden DRAM and NAND demand amid structural supply deficits, while dominant HBM3e and HBM4 market positions strengthen the high-value product mix and sustain earnings growth.
📊 1. [Valuation & Key Financial Metrics]
- Current Price (06/30): KRW 2,650,000 / Face Value: KRW 5,000
- 52-Week High / Low: KRW 2,919,000 / KRW 245,000
- KOSPI (06/30): 8,476.48p / KOSDAQ (06/30): 916.18p
- Capital Stock: KRW 365.77 billion / Market Capitalization: KRW 1,888,661.3 billion
- Common Stock Shares: 730.49 million / Foreign Ownership: 50.36%
- Major Shareholders: SK Square and 8 others (20.50%)
- 2026 Earnings Outlook: Revenue of KRW 35,805.1 billion (YoY +268.6%), Operating Profit of KRW 27,917.7 billion (YoY +461.0%, OPM 78.0%)
- 2027 Earnings Outlook: Revenue of KRW 49,529.1 billion, Operating Profit of KRW 38,272.9 billion
- PER (26.12E): 7.8x / PBR (26.12E): 5.2x / ROE (26.12E): 100.7%
🚀 2. [Market Opportunities & Business Outlook]
- For 2Q26, revenue is projected at KRW 83.5 trillion (YoY +275.7%, QoQ +58.8%) and operating profit at KRW 63.5 trillion (YoY +589.0%, QoQ +68.8%, OPM 76.0%), meeting consensus forecasts, supported by wider-than-expected memory price increases and the weak Korean won.
- [DRAM] B/G +8%, ASP +36%, Operating Profit of KRW 51.3 trillion (OPM 83.0%), [NAND] B/G +13%, ASP +60%, Operating Profit of KRW 12.1 trillion (OPM 57.0%) indicate ongoing price increases across all products in 2Q26, with higher HBM revenue contribution providing advantages in pricing power and margin defense over general memory.
- Spreading agentic AI adoption is broadening demand across DRAM and NAND with structural supply deficits persisting through 2028, leading to continued earnings improvement driven by steep price escalation momentum in the second half.
- High-value product mix improvements driven by a near-monopoly in HBM3e and over 60% market share in HBM4, alongside multi-year long-term supply agreements (LTAs), ensure reduced earnings volatility and extended cycle visibility.
- The scheduled ADR listing on July 10 provides an opportunity to expand the global investor base and re-rate valuation, while additional upward revisions to forecasts remain possible depending on the outcome of 2027 HBM price negotiations.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a company fully capitalizing on structural supply shortages driven by the spread of agentic AI, and as a high-value semiconductor enterprise reinforcing its premium product mix based on a near-monopoly in HBM3e and an overwhelming market share exceeding 60% in HBM4. This perspective places greater emphasis on reducing earnings volatility and securing long-term cycle visibility through expanded multi-year LTAs, moving well beyond a traditional short-term industry cycle rebound.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether steep price momentum in the second half translates into actual earnings performance, and whether the expansion of high-value market share in HBM3e and HBM4 directly enhances profitability. In addition, it is necessary to verify whether the expansion of multi-year LTAs leads to minimized earnings volatility and long-term visibility, alongside monitoring the realization of global investor base expansion and valuation re-rating following the scheduled ADR listing on July 10. These developments can be tracked through quarterly and annual earnings releases, official corporate IR materials, and regulatory filings on DART/KRX.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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