Business · Markets · 3 hrs ago
KB Securities says SK Hynix’s 100 trillion won shareholder return could lift its value
KB Securities maintained its buy rating on SK Hynix and kept its target price at 3.5 million won.
The South Korean memory-chip maker reported record third-quarter operating profit of 83 trillion won, which the brokerage linked to higher prices for DRAM and NAND chips.
KB Securities estimates fourth-quarter operating profit will reach 104 trillion won, up 441% from a year earlier.
It expects demand to remain strong, with much of the company’s planned DRAM and high-bandwidth memory production through 2029 already effectively sold.
The brokerage says 100 trillion won in shareholder returns could help close what it sees as a gap between the company’s value and its share price.
These figures include forecasts, so future results depend on prices and deliveries matching expectations.
KB Securities said SK Hynix’s planned 100 trillion won shareholder return could be a turning point in reassessing the company’s value.
The brokerage maintained its Buy rating and 3.5 million won target price.
It said SK Hynix shares were trading at an unusually low valuation despite record earnings.
KB Securities cited long-term supply contracts and strong demand for DRAM and HBM as factors supporting future earnings.
- Who
- KB Securities assessed SK Hynix’s outlook.
- What
- It said the company’s 100 trillion won shareholder return could help lift its value.
- When
- November 2, 2026.
- Where
- Not stated.
- Why
- KB Securities said the shareholder return could address what it sees as a historical undervaluation, alongside strong earnings and demand.
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- Shareholder return
- 100 trillion won
- Target price
- 3.5 million won
- Rating
- Buy
- Third-quarter operating profit
- 83 trillion won
- Fourth-quarter operating profit estimate
- 104 trillion won
What people are saying
At a time when record earnings and undervaluation coexist, the largest-ever shareholder return is expected to be a decisive turning point in resolving the historical undervaluation.