Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 3,200,000 (Upgraded)
Core Momentum : Surging enterprise SSD demand from AI data centers and stronger NAND pricing are expected to drive rapid NAND profitability expansion, supporting higher earnings forecasts and structurally stronger ROE.
📊 1. [Valuation & Key Financial Metrics]
- Equity Research Date: May 18, 2026
- Investment Rating: BUY (Maintained) / Target Price: KRW 3,200,000 (Upgraded)
- Current Price (as of 26/5/15): KRW 1,819,000 / Upside Potential: 75.9%
- Operating Profit (26F, KRW bn): 289,611 / Consensus Operating Profit (26F, KRW bn): 252,704
- EPS Growth (26F, %): 437.5 / MKT EPS Growth (26F, %): 229.0
- P/E (26F, x): 5.7 / MKT P/E (26F, x): 8.3 / KOSPI: 7,493.18
- Market Capitalization (KRW bn): 1,296,406 / Shares Outstanding (mn shares): 713 / Float Ratio (%): 74.9
- Foreign Ownership (%): 52.1 / Beta (12M) Daily Return: 1.70
- 52-Week Low / High (KRW): 196,900 / 1,976,000
- FY 2026F Estimates: Revenue KRW 366,485 bn, Operating Profit KRW 289,611 bn, Net Income KRW 226,381 bn, EPS KRW 316,901, ROE 97.3%, P/E 5.7x, P/B 3.7x, Dividend Yield 0.2%
- FY 2027F Estimates: Revenue KRW 530,534 bn, Operating Profit KRW 420,274 bn, Net Income KRW 311,182 bn, EPS KRW 436,622, ROE 62.4%, P/E 4.2x, P/B 2.0x, Dividend Yield 0.4%
🚀 2. [Market Opportunities & Business Outlook]
- The target price has been raised to KRW 3.2 million, applying the global pure memory sector average P/B multiple of 5.3x (previously 4.5x) to 12-month forward BPS, driven by expectations that higher memory price levels and expanded LTA portions will push average ROE for 2026–2028 to 66%.
- Projected operating profits for 2Q26F, 26F, and 27F have been revised upward to KRW 67.4 trillion, KRW 290 trillion, and KRW 420 trillion respectively. NAND ASP growth projections for 2Q26F/26F/27F were lifted to +45%/+232%/+27%, and the 2027 HBM ASP growth assumption was raised to +25.3%.
- Surging enterprise SSD demand in AI application environments makes scaling unit volumes inevitable, with the 26F b/g growth outlook for enterprise SSDs revised upward to 76.9%—marking a positive upward revision for three consecutive months.
- As major peers like Kioxia and SanDisk project operating profit margins (OPM) in the 70% range for the second quarter, SK hynix’s NAND division is also increasingly likely to reach the 70% OPM threshold, while Kioxia’s review of an ADR issuance underscores growing market expectations and potential capital inflows.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a primary beneficiary of exploding enterprise SSD demand for AI data centers and sustained NAND price strength. This perspective places significant emphasis on the steep profitability expansion within the high-value NAND division and a structural leap in ROE driven by expanding long-term agreements (LTAs), moving well beyond short-term memory price cycles.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether enterprise SSD b/g and volume growth momentum persists, and observing if the NAND division achieves operating margins in the 70% range. In addition, it is necessary to verify whether the upgraded operating profit forecasts and NAND ASP uptrends materialize through upcoming corporate earnings releases. These developments can be tracked through quarterly and annual earnings reports, official corporate 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.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
