On the 23rd, Daishin Securities raised its target price for SK hynix to KRW 1,450,000 from KRW 1,250,000, a 16.0% increase, reflecting upward revisions in memory price forecasts for 2026. Daishin Securities stated that it had significantly raised its earnings estimates, forecasting that SK hynix will achieve its strongest profitability in history.
Daishin revised its 2026 operating profit forecast for SK hynix, increasing it by 22.5% from KRW 14.2 trillion to KRW 17.4 trillion. The firm expects the average selling prices (ASP) of general-purpose DRAM and NAND to increase by 159% and 91%, respectively, in 2026 compared to the previous year. This is due to the strong demand for servers and the constrained expansion environment, which will continue to support price increases.
The high-bandwidth memory (HBM) division is also expected to maintain its leadership. Daishin Securities pointed out that "with the DRAM supply shortage continuing, the long-term demand outlook from major customers has been revised upward through 2028." They also expect product certification to be completed within the first quarter, and for SK hynix to maintain its position as a leading vendor in 2026.
Profitability is expected to reach record highs. Daishin Securities forecasts that DRAM operating margins will rise to the mid-80s, while NAND operating margins will reach the mid-50s during this cycle.
Furthermore, Daishin Securities highlighted that along with earnings growth, structural changes such as shifts in sales policies (LTA, advance payments, and deposits) and potential ADR issuance could lead to valuation premiums if these changes materialize.
