Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 2,700,000 (Maintained)
Core Momentum : Expanding order backlogs from big tech and AI cloud providers are expected to translate into sustained memory demand, while growing LTAs strengthen earnings visibility and support structurally higher ROE.
📊 1. [Valuation & Key Financial Metrics]
- Equity Research Date: May 11, 2026
- Investment Rating: BUY (Maintained) / Target Price: KRW 2,700,000 (Maintained)
- Current Price (as of 26/5/8): KRW 1,686,000 / Upside Potential: 60.1%
- Operating Profit (26F, KRW bn): 278,826 / Consensus Operating Profit (26F, KRW bn): 247,706
- EPS Growth (26F, %): 424.1 / MKT EPS Growth (26F, %): 224.0
- P/E (26F, x): 5.5 / MKT P/E (26F, x): 8.4 / KOSPI: 7,498.00
- Market Capitalization (KRW bn): 1,201,616 / Shares Outstanding (mn shares): 713 / Float Ratio (%): 75.1
- Foreign Ownership (%): 52.9 / Beta (12M) Daily Return: 1.71
- 52-Week Low / High (KRW): 190,100 / 1,686,000
- FY 2026F Estimates: Revenue KRW 355,195 bn, Operating Profit KRW 278,826 bn, Net Income KRW 220,736 bn, EPS KRW 308,999, ROE 96.0%, P/E 5.5x, P/B 3.5x, Dividend Yield 0.3%
- FY 2027F Estimates: Revenue KRW 507,470 bn, Operating Profit KRW 398,117 bn, Net Income KRW 305,392 bn, EPS KRW 428,499, ROE 62.3%, P/E 3.9x, P/B 1.9x, Dividend Yield 0.4%
🚀 2. [Market Opportunities & Business Outlook]
- The target price is maintained at KRW 2.7 million, applying the global memory sector average P/B multiple of 4.5x to 12-month forward BPS of KRW 596,154, with higher memory price levels and expanded LTA proportions expected to drive average ROE to 66% for 2026–2028.
- Projected ASP increases for 2Q26 DRAM and NAND are estimated at +37% and +30% respectively, with b/g growth at +9% and +15%, and operating profit projected at KRW 64.5 trillion (QoQ +71.6%).
- HBM revenue is forecasted to reach KRW 54 trillion in 2026 (YoY +72%) and expand to KRW 75 trillion in 2027 with a 20% ASP hike supported by second-half HBM4 shipments, while operating profit estimates are set at KRW 279 trillion for 26F and KRW 398 trillion for 27F.
- AI cloud provider CoreWeave’s 1Q26 order backlog surged to $99.4B, while Google Cloud and Amazon AWS reported massive order backlogs of $468B and $365B respectively, underlying the continued aggressive investments by big tech companies.
- Growing mid-to-long-term data center order backlogs translate into stable memory securing, as evidenced by SanDisk disclosing a $41.6B order backlog through long-term supply agreements in the first quarter, with similar discussions understood to be underway for SK hynix.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a premier enterprise locking in robust memory demand through stable Long-Term Agreements (LTAs) and capturing high profitability in tandem with exploding order backlogs from big tech and AI cloud providers. This perspective emphasizes that high earnings visibility allows the company to maintain superior ROE levels compared to historical cycles, supported by disciplined capital policies.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether massive order backlogs from big tech and AI cloud firms translate into actual Capex execution and LTA contracts. In addition, it is necessary to verify whether second-half HBM4 shipments materialize into projected revenue expansion (KRW 54 trillion in 2026) and ASP increases. These developments can be tracked through corporate earnings releases, official IR materials, and regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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