Market: KOSPI (000660)
Brokerage : Hanwha Investment & Securities
Analyst : Jun-young Park / RA : Na-woo Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 4,300,000 (Upgraded)
Core Momentum : LTAs and a growing HBM earnings contribution are expected to reduce historical memory-cycle volatility and strengthen earnings sustainability, supporting a valuation re-rating toward global semiconductor peer multiples.
📊 1. [Valuation & Key Financial Metrics]
- Current Price (6/19): KRW 2,764,000 / Upside Potential: 55.6%
- Market Capitalization: KRW 1,969,909.3 billion / Shares Outstanding: 712,702k shares
- 52-Week High / Low: KRW 2,764,000 / KRW 245,000
- 90-Day Average Trading Value: KRW 8,203.097 billion / Foreign Ownership: 51.3%
- Shareholder Composition: SK Square and 9 others 20.5%, National Pension Service (and 1 other) 7.5%, BlackRock Fund Advisors (and others) 5.1%
- Financial Information (2026E): Revenue KRW 339,433 bn, Operating Profit KRW 266,650 bn, EBITDA KRW 285,241 bn, Net Income Attributable to Controlling Shareholders KRW 217,232 bn, EPS KRW 321,737, PER 8.6x, PBR 5.8x, EV/EBITDA 6.3x, ROE 94.3%
- Financial Information (2027E): Revenue KRW 506,832 bn, Operating Profit KRW 419,522 bn, EBITDA KRW 444,253 bn, Net Income Attributable to Controlling Shareholders KRW 318,894 bn, EPS KRW 472,307, PER 5.9x, PBR 3.0x, EV/EBITDA 3.4x, ROE 64.0%
🚀 2. [Market Opportunities & Business Outlook]
- The company is transforming from an entity showing extreme earnings volatility into one capable of continuously generating high levels of earnings, indicating that unwarranted discounts within the global tech sector are no longer justified.
- The Korean memory industry is overcoming past weaknesses—namely severe earnings declines and volatility during downturns—backed by powerful catalysts: 1) Long-Term Agreements (LTAs) and 2) High Bandwidth Memory (HBM).
- LTAs currently being actively signed incorporate both structural mechanisms to defend memory price floors and legal provisions for faithful contract execution, which are judged to guarantee a minimum operating margin of 30% even during future downturns.
- HBM accounts for around 20% of the company’s operating profit and is expected to increase steadily over the medium to long term, while targeted ADR listings within the year bring closer opportunities for comparative valuation against peer groups in the US market.
- The target price has been raised to KRW 4,300,000, calculated by applying a target P/E multiple of 10x—the minimum 12MF P/E of global semiconductor stocks—to a 12MF EPS of KRW 429,777.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix not as a traditional cyclical manufacturer subject to extreme earnings swings, but as a high-value semiconductor enterprise that has secured structural earnings stability through LTAs and HBM, deserving of valuation multiples aligned with the global tech sector average. This perspective places greater emphasis on corporate transformation away from historical downturn vulnerability toward peer-level valuation parity.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether expanding LTA proportions actually safeguard operating margins at a minimum of 30% during future down-cycles, and observing the steady medium-to-long-term growth of HBM profit contributions. In addition, it is necessary to verify whether the planned ADR listing within the year successfully materializes, resolving valuation gaps with US peers and leading to multiple expansion. These developments can be tracked through corporate earnings releases, official IR materials, and regulatory filings.
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