Market: KOSPI (000660)
Brokerage : Kyobo Securities
Analyst : Boyoung Choi
Investment Rating : Buy (Maintained)
Target Price : KRW 1,900,000 (Upgraded)
Core Momentum : Expanding AI infrastructure and agentic AI adoption are driving strong demand for HBM, high-capacity server DRAM, and enterprise SSDs amid structural supply shortages, sustaining steep memory pricing and earnings growth.
📊 1. [Valuation & Key Financial Metrics]
- Equity Research Date: April 24, 2026
- Investment Rating: Buy / Target Price (12M): KRW 1,900,000 (Upgraded)
- Current Price (as of 4/23): KRW 1,225,000 / Upside Potential: 63.3%
- KOSPI: 6,475.81pt / Market Capitalization: KRW 873,060.4 billion
- Shares Outstanding (Common): 71,270k shares / Shares Outstanding (Preferred): 0k shares
- Foreign Ownership: 53.10% / 52-Week High / Low (Common): KRW 1,225,000 / KRW 177,500 / Average Trading Value (60D): KRW 4,368.4 billion
- Major Shareholders: SK Square and 6 others 20.50%
- FY 2026.12E Estimates: Revenue KRW 330,324 bn, Operating Profit KRW 245,954 bn, Net Income KRW 213,972 bn, EPS KRW 300,026, PER 4.1x, PBR 2.6x, ROE 94.5%
- FY 2027.12E Estimates: Revenue KRW 459,193 bn, Operating Profit KRW 352,409 bn, Net Income KRW 307,943 bn, EPS KRW 431,791, PER 2.8x, PBR 1.4x, ROE 63.5%
🚀 2. [Market Opportunities & Business Outlook]
- SK hynix’s 1Q26 revenue recorded KRW 52.6 trillion (YoY +198.1%, QoQ +60.2%) and operating profit reached KRW 37.6 trillion (YoY +405.5%, QoQ +22.5%, OPM 72%), beating market consensus (revenue of KRW 51.7 trillion, operating profit of KRW 36.3 trillion).
- High-value-added demand for HBM, high-capacity server DRAM, and enterprise SSDs remained stronger than expected due to expanded AI infrastructure investment and agentic AI evolution, creating a tight supply environment underpinned by customers prioritizing volume security.
- 2Q26 revenue is projected at KRW 79.8 trillion (YoY +259.3%, QoQ +51.9%) and operating profit at KRW 58.2 trillion (YoY +531.9%, QoQ +1.9%, OPM 72.9%), indicating that steep price momentum will persist into the second quarter.
- Full-year 2026 revenue is expected at KRW 330 trillion and operating profit at KRW 245 trillion (OPM 74.5%), with broad-based demand expansion and structural supply shortages driven by agentic AI fueling strong earnings enhancement through the second half.
- The company maintains its position as a top-tier pure player, backed by product mix improvements via HBM3E monopoly and 60%+ HBM4 market shares, reduced earnings volatility through multi-year LTAs, and valuation re-rating opportunities via upcoming US ADR listings slated for decision within June.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst evaluates SK hynix as a leading enterprise possessing industry-leading profitability and pure-player status, raising the target price to KRW 1,900,000 to reflect the stellar Q1 earnings surprise and powerful pricing momentum. It is crucial to monitor whether high-value memory demand advantages structural up-cycles amid expanding agentic AI.
To determine whether this investment thesis is actively unfolding, key monitoring items include tracking 2Q earnings results against projections (operating profit of KRW 58.2 trillion), watching the progress of the US ADR listing decision within June, and verifying multi-year LTA execution trends. These developments can be tracked through corporate earnings reports, regulatory disclosures, and official IR materials.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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