Market: KOSPI (000660)
Brokerage : Shinhan Investment Corp.
Analyst : Kim Hyung-tae, Song Hye-su
Investment Rating : BUY (Maintained)
Target Price : KRW 4,200,000 (Upgraded)
Core Momentum : The upcoming Nasdaq ADR listing is expected to narrow the valuation gap with global peers, while stronger commodity memory pricing and SK hynix’s dominant HBM position support further earnings expansion through the HBM price-up cycle.
📊 1. [Valuation & Key Financial Metrics]
- Investment Judgment: BUY (Maintained) / Target Price: KRW 4,200,000 (Upgraded)
- Upside Potential: 59.8% / Current Price (June 29): KRW 2,628,000
- Market Capitalization: KRW 1,872,981.8 billion / Shares Outstanding (Float Ratio): 730.5 million (74.4%)
- 52-Week High / Low: KRW 2,919,000 / KRW 245,000 / 60-Day Average Trading Value: KRW 9,831.512 billion / Foreign Ownership: 50.4%
- Major Shareholders: SK Square and 8 others 20.5%, National Pension Service 7.5%
- FY 2026 Earnings Estimates: Revenue of KRW 370,420.0 billion, Operating Profit of KRW 282,490.1 billion, Net Income of KRW 247,830.3 billion, PER 7.7x, ROE 101.9%, PBR 5.2x, EV/EBITDA 5.8x, DY 0.2%
- FY 2027 Earnings Estimates: Revenue of KRW 601,297.1 billion, Operating Profit of KRW 468,268.6 billion, Net Income of KRW 375,902.2 billion, PER 5.1x, ROE 69.0%, PBR 2.7x, EV/EBITDA 3.1x, DY 1.0%
🚀 2. [Market Opportunities & Business Outlook]
- With the Nasdaq listing materialized for July, the company is expected to re-establish its status as a global memory leader, while general DRAM price increases in the second half are projected to exceed previous estimates.
- DRAM ASP projections have been revised upward from 11% in 3Q and 8% in 4Q to 20% and 11% respectively, expecting maximum benefits starting 1Q27 in the HBM price hike phase backed by dominant influence in the HBM market.
- 2Q26 Preview revenue is projected at KRW 88.3 trillion (+66% QoQ) and operating profit at KRW 66.8 trillion (+78% QoQ), supported by FX effects, wider application shipments, and deepened general product supply shortages leading to potential 20% and 23% price hikes for DRAM and NAND in 3Q26.
- Gross profit margins are expected to sustain above 80%, maintaining top-tier profitability within the semiconductor industry, alongside steady progress in the NAND division’s eSSD business.
- The target price has been raised by 10.5% to KRW 4,200,000, applying a target PBR of 5.7x—matching North American peers—to a 12-month forward BPS of KRW 742,615 (+15% vs previous).
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as an enterprise poised to re-emerge as a leading global memory player through its upcoming July Nasdaq listing, progressively narrowing its valuation gap as it receives peer-level evaluation within North American competitor strongholds. The perspective places significant emphasis on capturing the dual benefits of multiple expansion from the ADR listing and maximum profitability gains from the HBM price hike cycle, extending well beyond short-term earnings beats.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking whether the status as a global memory leader is re-affirmed following the July Nasdaq listing and observing the pace of valuation gap contraction. Additionally, it is necessary to verify the acceleration of DRAM and NAND price hikes in the third and fourth quarters, the reflection of earnings during the HBM3E and HBM4 price escalation phases, and the materialization of shareholder return expectations. These developments can be tracked through upcoming earnings releases, official corporate IR materials, and regulatory filings on DART/KRX.
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