3Q26 Filing Fact: 104.6T KRW Rev, 83.4T OP (80% OPM), +47.3T FCF (Net income dip driven by -32.6T non-op swing)
Valuation Estimate: Trailing P/E 6.61x · Consensus Fwd P/E 4.17x · EV / Annualized 3Q OP 2.95x
6–12M Direction: ▲ BULLISH — 22.4T KRW capital return (10T cancellation + 12.4T dividend) + HBM4 lock in floor
Issuer & Live Multiples
Valuation & 6–12M Direction
Primary-Filing Basis & Catalyst
SK Hynix (000660.KS) 1,391,000 KRW · Fwd P/E 4.17x · EV/Ann.3Q OP 2.95x
UNDERVALUED (▲ Strong Bullish)
17.5% annualized 3Q FCF yield and 4.17x Fwd P/E represent deep structural undervaluation
104.6155T KRW quarterly revenue (+328% YoY), 80% operating margin (83.3338T KRW OP), 98.7T KRW net cash, and a ~100T KRW FY26 shareholder return target landed in a single release.
As of 2026.10.28 · Source: SK Hynix 3Q26 Business Results (2026.10.28) · Derived ratios marked (Calc.).
Left: SK Hynix quarterly revenue and operating profit progression (3Q25–3Q26). Right: Balance-sheet cash vs. borrowings and net cash expansion. Source: SK Hynix quarterly releases [1][3][4].
1. 3Q26 Earnings Scorecard: 80% OPM vs. -58% QoQ Net Profit Drop
Revenue Doubled in 6 Months: 3Q26 revenue 104.6155T KRW (+32% QoQ vs. 79.3187T in 2Q26; +328% YoY vs. 24.4489T in 3Q25; 2x 1Q26's 52.5763T KRW) [1][2][3][4].
Operating Leverage: OP hit 83.3338T KRW (+38% QoQ vs. 60.5426T; +632% YoY vs. 11.3834T) → OPM 80% (+33pp YoY; +3.33pp unrounded QoQ, Calc.) [1][3][4].
Operating vs. Net Profit Divergence: Net profit was 39.7756T KRW (38% net margin; +216% YoY vs. 12.5975T, but -58% QoQ vs. 2Q26's 93.9226T KRW, where net profit exceeded 60.5426T OP due to non-operating items) [1][3].
Item
3Q26 Summary
Revenue
104.6155 trillion KRW, +32% QoQ
Operating Profit
83.3338 trillion KRW, operating margin 80%
Net Profit
39.7756 trillion KRW, +216% YoY, -58% QoQ
Product Mix
Management expects HBM4 revenue to overtake HBM3E in 4Q26
Long-Term Agreements
Over 50% of total 2027–2028 production capacity already contracted
14T KRW dividend (20,000 KRW/share), 20T KRW buyback (only the 10T KRW cancellation tranche counts toward the return total)
2. HBM4 4Q26 Crossover & 2027–2028 LTA Structure
HBM4 Overtakes HBM3E in 4Q26: Following 2Q26 mass shipments, Cheongju M15X capacity is being maximized so HBM4 overtakes HBM3E in both volume and revenue in 4Q26, alongside surging high-density server DDR5 and 321-layer TLC eSSD sales [1][2].
>50% of 2027–2028 Capacity Locked Under LTAs: Global cloud LTAs cover >50% of 2027–2028 capacity with market-linked price bands (locking volume, not fixed margins); management projects demand > supply through 2030 [1]. Solidigm IPO review was halted [1].
Personal analysis record based on public regulatory filings. Not investment advice or a solicitation to buy or sell any security.
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