Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Investment Thesis and Target Price
SK Securities maintains an Investment Rating of Buy and a Target Price of 4,000,000 KRW (~$2,792 USD based on 1433 KRW/USD). The brokerage believes that SK Hynix’s strategic direction, commitment to shareholder returns, and Long-Term Agreement (LTA) competitiveness align with the memory sector re-rating (P/E expansion) that the firm has advocated since November. The valuation is supported by the company’s strong partnership with major North American GPU players and the structural increase in profit visibility and sustainability through LTAs.
Earnings Estimates and Financial Preview
For the full year 2026E, SK Securities estimates Revenue of 348,724 billion KRW (~$243.4B USD) and Operating Profit of 273,739 billion KRW (~$190.9B USD). For 2027E, estimates rise to Revenue of 535,481 billion KRW (~$373.6B USD) and Operating Profit of 425,283 billion KRW (~$296.8B USD). In the most recent quarter (2Q26), the company recorded Revenue of 79,319 billion KRW (~$55.3B USD) and Operating Profit of 60,543 billion KRW (~$42.2B USD), representing a Year-over-Year (YoY) increase of 257% and 557%, respectively.
Key Semiconductor Drivers and Outlook
The report highlights several critical drivers: 1) High Bandwidth Memory (HBM): Strong competitiveness and partnerships with North American GPU firms are key. 2) LTA Strategy: LTAs are viewed as a ‘mutual hostage structure’ that optimizes price, volume, and safety nets, significantly raising the profit floor compared to the past. 3) Shareholder Returns: The company is reviewing dividends and treasury stock buybacks/cancellations, which is seen as the core foundation for re-rating. 4) Financial Position: The timeline to reach 100 trillion KRW (~$69.8B USD) in net cash has been accelerated due to ADR issuance and dividend income from the sale of KIOXIA SPC1.
🔗 Original Source: View the official filing/article here.