Citi: SK Hynix Delivers Strong 3Q Results, Reiterates Buy Rating

SK Hynix (000660.KS), given higher ASP of memory products and increased sales of high-value products, recorded operating profit of KRW83.3 trillion in 3Q despite FX headwinds, up 38% QoQ and 632% YoY, with an operating margin of 80%, Citi said in a report.

The bank said the company announced a shareholder return plan of around KRW100 trillion for FY2026. A dividend of around KRW14 trillion was declared for 3Q, alongside an additional KRW20 trillion share buyback announcement. Given relatively strong earnings and cash flow, management believed the current valuation is undervalued and plans to continue quarterly buybacks.

The bank raised its 4Q operating profit forecast for SK Hynix from KRW89.8 trillion to KRW107 trillion, and also lifted its 2026 and 2027 operating profit forecasts by 7% and 12%, respectively. It reiterated the Buy rating and maintained the target price at KRW3 million.