Brokerage : Shinhan Investment Corp.
Market: KOSPI (000660)
Analyst : Hyung-tae Kim / RA: Hye-su Song
Investment Rating : BUY (Maintained)
Target Price : KRW 3,800,000 (Upgraded)
Core Momentum : Persistent supply-demand imbalances and expanding memory applications are expected to prolong price increases across DRAM and NAND, driving accelerated second-half earnings growth and sustaining industry-leading profitability.
📊 1. [Valuation & Key Financial Metrics]
- Investment Judgment: BUY (Maintained) / Target Price: KRW 3,800,000 (Upgraded)
- Upside Potential: 117.8% / Current Price (May 20): KRW 1,745,000
- Market Capitalization: KRW 1,243,665.6 billion / Shares Outstanding (Float Ratio): 712.7 million (74.9%)
- 52-Week High / Low: KRW 1,976,000 / KRW 196,900 / 60-Day Average Trading Value: KRW 5,804,616 million / Foreign Ownership: 51.9%
- Major Shareholders: SK Square and 8 others 20.5%, National Pension Service 7.5%
- FY 2026F Estimates: Revenue KRW 352,473.1 billion, Operating Profit KRW 266,930.6 billion, Net Income KRW 222,645.3 billion, PER 5.6x, ROE 96.5%, PBR 3.6x, EV/EBITDA 4.0x, Dividend Yield 0.2%
- FY 2027F Estimates: Revenue KRW 527,540.9 billion, Operating Profit KRW 405,776.4 billion, Net Income KRW 321,141.9 billion, PER 3.9x, ROE 64.5%, PBR 1.9x, EV/EBITDA 2.2x, Dividend Yield 0.6%
🚀 2. [Market Opportunities & Business Outlook]
- Severe supply-demand imbalances are unlikely to ease in the near term, and excess demand environments are intensifying due to new memory application diversifications in 2H26, making price trends surpassing past memory up-cycles a reality.
- Annual revenue for 2026 is projected at KRW 352.5 trillion (+262.8% YoY) and operating profit at KRW 266.9 trillion (+465.5% YoY), with divisional operating profit estimated at KRW 210.7 trillion for DRAM and KRW 56.4 trillion for NAND.
- Second-half revenue and operating profit are expected to grow by 53.7% and 59.4% respectively compared to the first half, sustaining top-tier profitability within the semiconductor industry with gross profit margins continuing above 80%.
- The target price has been raised by 100% to KRW 3,800,000, applying a target PBR of 5.8x—matching North American peers—to a 12-month forward BPS of KRW 646,077.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a prime beneficiary of prolonged price uptrends across all products, fueled by supply constraints and application diversifications. This perspective emphasizes that the company has entered a phase of maximized earnings momentum and exceptional profitability that fully justifies valuation multiples matching North American peers (PBR 5.8x).
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether projected second-half earnings growth (revenue +53.7%, operating profit +59.4% vs. 1H) materializes, and verifying if materialized HBM price hikes and expanded eSSD profit contributions translate into actual margin expansion. These developments can be tracked through quarterly and annual earnings releases, official corporate IR materials, and regulatory filings.
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