Source Fact: Yuanta Securities (Korea) / Report Date: July 2, 2026
Investment Opinion & Target Price: BUY (Maintain) / 2,100,000 KRW (Upgraded)
Key Momentum: A massive increase in asset value to KRW 375T driven by the upward revision of SK hynix’s controlling net income, resulting in aggressive shareholder returns via share buybacks, cancellations, and cash dividends.
📊 1. [Valuation Indicators and Investment Metrics Analysis]
- Target Price Rationale: The target price has been substantially raised from KRW 840,000 to KRW 2,100,000, driven by the surging value of its subsidiary holdings. The value of subsidiary shares expanded from KRW 99T at the beginning of the year to KRW 375T. Combined with expected increases in dividend income, the trend of enhancing shareholder value per share is projected to persist.
- Financial Metrics & Valuation Trends:
- 2024A (Actual): Revenue KRW 5.88T / Operating Profit KRW 3.92T / Controlling Net Income KRW 3.71T | PER 2.9x / PBR 0.5x / EV/EBITDA 2.5x / ROE 21.7%
- 2025A (Actual): Revenue KRW 10.45T / Operating Profit KRW 8.79T / Controlling Net Income KRW 8.82T | PER 2.5x / PBR 0.8x / EV/EBITDA 2.4x / ROE 37.8%
- 2026F (Forecast): Revenue KRW 1.37T / Operating Profit KRW 45.66T / Controlling Net Income KRW 35.22T | PER 6.6x / PBR 3.7x / EV/EBITDA -3,374.8x / ROE 78.0%
- 2027F (Forecast): Revenue KRW 1.44T / Operating Profit KRW 65.16T / Controlling Net Income KRW 51.33T | PER 4.5x / PBR 2.0x / EV/EBITDA -3,012.1x / ROE 58.3%
🚀 2. [Market Opportunity (TAM) and Detailed Earnings Estimates]
- Performance Growth of Core Subsidiaries and Portfolio:
- SK hynix Controlling Net Income Consensus: Supported by robust AI-driven memory demand, expectations have risen sharply to KRW 223T (+422% YoY) for 2026 and KRW 316T (+41% YoY) for 2027, indicating historical record-breaking performances.
- TMAP Mobility: Achieved +22% YoY growth in its Mobility Data business revenue during 1Q26, driving top-line growth and maintaining a steady upward trajectory in EBITDA.
- SK shields: Propelled by expansion in both physical and cybersecurity segments, 1Q26 revenue reached KRW 559.1B (+8.4% YoY), and EBITDA (excluding one-off factors) recorded KRW 117.6B (+2.4% YoY).
- Acceleration of Shareholder Return Framework:
- Share Buybacks & Dividend Status: Starting in 2026, cash dividends have been introduced alongside existing share buyback and cancellation programs. The company completed a KRW 40B share buyback as of May 13 and approved an interim dividend of KRW 204.3B (KRW 1,550 per share) on April 30.
- Annual Return Outlook: Considering the full-year share buyback target for 2026 (KRW 110B) and the rising dividend income flowing from SK hynix, the total scale of annual shareholder returns holds high potential for further expansion.
- 2Q26E Quarterly Projections:
- Revenue: KRW 346B (-82.2% YoY / +15.2% QoQ)
- Operating Profit: KRW 10.47T (+648.3% YoY / +26.5% QoQ)
- Controlling Net Income: KRW 8.03T (+457.6% YoY / -4.2% QoQ)
📝 Editor Comment (by K-STOCK Editor)
The investment thesis for SK Square is inherently linked to the immense earnings power demonstrated by its core asset, SK hynix. The explosive appreciation of its subsidiary equity value—from KRW 99T to KRW 375T since the start of the year—serves as definitive evidence of the structural re-rating taking place within this portfolio holding company. Crucially for the market, this asset appreciation is not merely a paper metric; it translates directly into tangible capital allocation via shareholder returns, utilizing more than 30% of recurring dividend income. Furthermore, non-listed core portfolios such as TMAP Mobility and SK shields have proven their organic fundamental stability with solid top-line growth in 1Q26. With a robust flywheel established—where subsidiary outperformance channels higher dividend inflows back into aggressive per-share value enhancements—investors should monitor potential narrowings of the Net Asset Value (NAV) discount rate.
📢 Disclaimer & Sources Source: This content was structurally reconstructed based on official financial facts and figures extracted from publicly available securities research reports.
Investment Risk Warning: This material is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice, or a solicitation or recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest solely with the individual investor.
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