SK hynix still in the 1.7-million-won range? “Too undervalued, headed for 4 million won”

[Financial News] An assessment has emerged that SK hynix, whose share price has been fluctuating around 1.8 million won, is “severely undervalued.” Kim Un-ho, a researcher at IBK Investment & Securities, said on the 7th, “There are many reasons not to be shaken,” adding, “I believe the current share price is in a phase of being severely undervalued.” He maintained his target price for SK hynix at 4 million won. SK hynix closed at 1,773,000 won on the 6th.
Kim explained, “Demand for memory continues to rise with the growth of artificial intelligence (AI) models, while the increase in supply is limited, and this situation is expected to persist for a considerable period.”
He went on to say, “Volatility in DRAM and NAND prices at current levels is low, and we expect stable cash flow to be generated while high profitability is maintained.” He assessed that the semiconductor average selling price (ASP) remains on an upward trajectory.
Kim said, “We expect SK hynix to post revenue of 95.8 trillion won and operating profit of 75.1 trillion won in the third quarter of 2026. These figures are lower than our previous forecast due to the won-dollar exchange rate, but the operating margin is expected to rise 2.1 percentage points from the previous quarter to 78.4%.”
He added, “We estimate DRAM revenue at 73.1 trillion won and operating profit at 59.2 trillion won. We revised our DRAM ASP forecast upward from the previous estimate to reflect price increases for some products. We expect NAND revenue of 22.4 trillion won and operating profit of 15.9 trillion won.”
Meanwhile, SK hynix announced last August that it would use at least 50% of its free cash flow (FCF), after deducting capital expenditures (CapEx), for shareholder returns. Kim forecast that this could lead to additional share buybacks.
Kim said, “I estimate the scale of shareholder returns to be at least around 90 trillion won for 2026. The company is planning shareholder returns primarily through treasury shares, and I expect additional share buybacks in the fourth quarter, on top of the 40 trillion won already being implemented.”

[email protected] Han Young-jun Reporter