Market: KOSPI (000660)
Brokerage : Kiwoom Securities
Analyst : Park Yu-ak
Investment Rating : Outperform (Downgrade)
Target Price : KRW 1,900,000 (Upgraded)
Core Momentum : Severe supply constraints are driving sharp price increases across commodity DRAM and NAND, supporting a surge in Q2 operating profit above market expectations, although weaker PC and smartphone demand could moderate pricing momentum in Q3
📊 1. [Valuation & Key Financial Metrics]
- KOSPI (5/8): 7,498.00pt
- 52-Week High / Low: KRW 1,686,000 / KRW 190,100
- Shares Outstanding: 712.7 million shares / 3M Average Daily Trading Volume: 4.45 million shares
- Foreign Ownership: 52.9% / Dividend Yield (26E): 0.5% / BPS (26E): KRW 438,994
- Major Shareholders: SK Square and 9 others (20.5%)
- FY 2026F Estimates (IFRS Consolidated): Revenue KRW 322,598 bn, Operating Profit KRW 248,469 bn, Net Income KRW 201,842 bn
- FY 2027F Estimates (IFRS Consolidated): Revenue KRW 353,890 bn, Operating Profit KRW 256,646 bn, Net Income KRW 199,283 bn
🚀 2. [Market Opportunities & Business Outlook]
- SK hynix’s 2Q26 performance is projected to reach revenue of KRW 87.3 trillion (+66% QoQ) and operating profit of KRW 70.0 trillion (+86% QoQ), exceeding existing estimates and the market consensus (operating profit of KRW 60.6 trillion).
- This outperformance is driven by generic memory price increases surpassing market expectations, with DRAM rising +53% QoQ and NAND climbing +75% QoQ.
- Driven by supply constraints, mobile DRAM prices are surging +76% QoQ, while prices for all NAND products (eMMC, UFS, SSD) spike by 70–80% QoQ, driving overall average selling price (ASP) gains.
- While 3Q26 operating profit is expected to grow to KRW 75.2 trillion (+7% QoQ), memory price growth is anticipated to slow down to a single-digit percentage increase quarter-on-quarter due to demand sluggishness in PCs and smartphones.
- The target price has been upgraded from KRW 1,300,000 to KRW 1,900,000 reflecting upward revisions to mid-to-long-term earnings outlooks, while maintaining an ‘Outperform’ stance as a runner-up preference in the semiconductor sector.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a premier enterprise entering a landmark phase where operating profit scales past KRW 70 trillion in the second quarter, propelled by severe supply tightening and explosive price surges across generic DRAM and NAND products. This perspective emphasizes extraordinary near-term profit momentum while pragmatically adjusting the investment rating to account for valuation gaps relative to the current stock price.
To determine whether this investment thesis is actively unfolding, key monitoring items include verifying whether actual 2Q26 earnings releases confirm the projected price hike magnitudes for generic DRAM and NAND. In addition, it is necessary to track whether softening demand in PCs and smartphones tempers 3Q26 price momentum as predicted, and whether the company stays on track to achieve the projected KRW 75.2 trillion operating profit in the third quarter. These developments can be tracked through corporate earnings releases, official IR materials, and regulatory filings.
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