Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 4,200,000 (Upgraded)
Core Momentum : The SKHY US ADR listing is expected to broaden the global investor base and create potential passive inflows through SOX index inclusion, while stronger 2027 HBM pricing supports further earnings growth and valuation re-rating.
📊 1. [Valuation & Key Financial Metrics]
- Equity Research Date: June 25, 2026
- Investment Rating: BUY (Maintained) / Target Price: KRW 4,200,000 (Upgraded)
- Current Price (as of 26/6/24): KRW 2,580,000 / Upside Potential: 62.8%
- Operating Profit (26F, KRW bn): 299,132 / Consensus Operating Profit (26F, KRW bn): 265,768
- EPS Growth (26F, %): 458.7 / MKT EPS Growth (26F, %): 248.0
- P/E (26F, x): 7.8 / MKT P/E (26F, x): 9.0 / KOSPI: 8,471.02
- Market Capitalization (KRW bn): 1,838,772 / Shares Outstanding (mn shares): 713 / Float Ratio (%): 74.4
- Foreign Ownership (%): 50.8 / Beta (12M) Daily Return: 1.80
- 52-Week Low / High (KRW): 245,000 / 2,919,000
- FY 2026F Estimates: Revenue KRW 375,832 bn, Operating Profit KRW 299,132 bn, Net Income KRW 235,283 bn, EPS KRW 329,362, ROE 98.2%, P/E 7.8x, P/B 5.1x, Dividend Yield 0.2%
- FY 2027F Estimates: Revenue KRW 559,607 bn, Operating Profit KRW 449,262 bn, Net Income KRW 343,254 bn, EPS KRW 481,623, ROE 64.9%, P/E 5.4x, P/B 2.6x, Dividend Yield 0.3%
🚀 2. [Market Opportunities & Business Outlook]
- SK hynix finalized the issuance schedule for its SKHY US ADR through a regulatory filing, planning to issue up to 17.9 million shares via a third-party allocation paid-in capital increase, valued at approximately KRW 45 trillion based on the previous close (KRW 2,555,000).
- The company anticipates Philadelphia Semiconductor Index (SOX) inclusion following the ADR listing, as its offering market cap ($30B) ranks 25th within the SOX index, supported by a smooth 1.0:1 issuance ratio and expected passive inflows during next September’s periodic index rebalancing.
- The target price has been raised to KRW 4,200,000 (from KRW 3,800,000), applying a target multiple of 7.4x P/B (a 10% discount to Micron and Kioxia averages) along with a justified premium valuation given expectations that LTA proportions will exceed 50%.
- Projected ASP increases for 2Q26F/26F/27F are estimated at +41%/+188%/+23% for DRAM and +55%/+250%/+28% for NAND, while the 2027 HBM price increase assumption has been adjusted to 43.7% (previously 25.3%).
- Reflecting these factors, projected operating profit estimates for 2Q26F/26F/27F are set at KRW 71 trillion / KRW 299 trillion / KRW 449 trillion, respectively, with only the 2027 outlook revised upward by 3.3%.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a leading global memory enterprise expanding its global investor base through the upcoming July Nasdaq ADR listing (SKHY US) and capturing major demand catalysts via potential inclusion in the Philadelphia Semiconductor Index (SOX). This perspective places major emphasis on fundamental enhancements driven by large-scale capital raising, expanded LTA proportions, and 2027 HBM pricing upside, extending well beyond short-term industry tailwinds.
To determine whether this investment thesis is actively unfolding, key monitoring items include verifying the successful listing and trading commencement of SKHY US ADR scheduled for July 10, alongside monitoring arbitrage dynamics and premium gap trends. In addition, it is necessary to track whether SOX index inclusion materializes during upcoming rebalancing and whether expanded LTA portions translate into projected 2027 HBM price gains and earnings upgrades. These developments can be tracked through future corporate earnings releases, official corporate IR materials, and regulatory filings on DART/KRX.
📢 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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