Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : KRW 3,800,000 (Maintained)
Core Momentum : The planned US ADR listing is expected to expand global investor access and create potential passive inflows through PHLX index inclusion, supporting a valuation re-rating that narrows the multiple discount to global semiconductor peers.
📊 1. [Valuation & Key Financial Metrics]
- Equity Research Date: June 1, 2026
- Investment Rating: BUY (Maintained) / Target Price: KRW 3,800,000 (Maintained)
- Current Price (as of 26/5/29): KRW 2,333,000 / Upside Potential: 62.9%
- Operating Profit (26F, KRW bn): 289,785 / Consensus Operating Profit (26F, KRW bn): 256,000
- EPS Growth (26F, %): 441.9 / MKT EPS Growth (26F, %): 239.0
- P/E (26F, x): 7.3 / MKT P/E (26F, x): 9.2 / KOSPI: 8,476.15
- Market Capitalization (KRW bn): 1,662,735 / Shares Outstanding (mn shares): 713 / Float Ratio (%): 74.9
- Foreign Ownership (%): 51.4 / Beta (12M) Daily Return: 1.73
- 52-Week Low / High (KRW): 204,500 / 2,333,000
- FY 2026F Estimates: Revenue KRW 366,486 bn, Operating Profit KRW 289,785 bn, Net Income KRW 228,203 bn, EPS KRW 319,452, ROE 96.7%, P/E 7.3x, P/B 4.7x, Dividend Yield 0.2%
- FY 2027F Estimates: Revenue KRW 530,534 bn, Operating Profit KRW 420,470 bn, Net Income KRW 321,079 bn, EPS KRW 450,509, ROE 62.9%, P/E 5.2x, P/B 2.5x, Dividend Yield 0.3%
🚀 2. [Market Opportunities & Business Outlook]
- The company confidentially submitted a registration statement for an ADR listing public offering to the US SEC on March 24, targeting a listing within the year through a new share issuance method of up to 2.5% (17.9 million shares).
- Following the ADR listing, inclusion in the Philadelphia Semiconductor Index (PHLX) is anticipated, which could bring passive inflow distributions supported by weight caps on top-tier index constituents.
- Operating profits for 2Q26 and 26F are estimated at KRW 67 trillion and KRW 290 trillion respectively, outperforming recent 1-month market consensus, while its 27F P/E of 5.2x and P/B of 2.4x highlight absolute undervaluation compared to PHLX averages.
- Given strict commercial law revisions regarding treasury stock disposals following its full treasury stock cancellation, the ADR issuance is most likely to proceed via new share issuance tailored to maintain the largest shareholder’s stake requirements.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as an enterprise combining solid fundamental earnings growth with dual catalysts: a US ADR listing and expectations of PHLX index inclusion, capturing global passive fund inflows and valuation re-rating. This perspective focuses on closing the multiple discount gap relative to global semiconductor peers despite its robust earnings power.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking the progress of the US ADR public offering timeline and the finalization of new share issuance scale within the year. In addition, it is necessary to verify post-listing daily trading volume requirement of at least 1.5 million shares after 6 months of listing and monitor the visibility of PHLX index inclusion and passive inflow distribution during upcoming periodic rebalancings such as September 2027. These developments can be tracked through corporate earnings releases, official IR materials, and regulatory filings on DART/SEC.
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