Svmuu News UBS reported that SK Hynix is continuing to push for the signing of additional revised long-term agreements, focusing on DDR5 and NAND Flash for hyperscale data center customers. These contracts have terms exceeding five years, with approximately 60% to 70% of expected volume and price already locked in, which will enhance future earnings visibility.Based on a forward 12-month price-to-book ratio of 3.65x, UBS raised its target price for SK Hynix from 3 million won to 3.2 million won and maintained its “Buy” rating.
SK Hynix began ramping up shipments of HBM4 for the Rubin platform in the second quarter, indicating that it has completed final design adjustments to meet specifications.Although Samsung Electronics’ HBM bit market share in 2027 may be slightly higher than SK Hynix’s—41% versus 39%—in the long term, HBM’s share of SK Hynix’s DRAM business is expected to exceed that of its peers. UBS Forecasts indicate that HBM’s share of DRAM revenue will rise from 15% in 2026 to 58% in 2030. If the average selling price of HBM continues to rise, it will provide an additional boost to profits in 2027.
UBSIt is noted that the shareholder return policy is expected to continue strengthening, and share buybacks are anticipated to begin and gradually accelerate following the ADR listing.UBS points out that there is still room for further increases in DDR and NAND Flash contract pricing in the second half of 2026.Taking into account the revised long-term agreements and HBM, UBS forecasts that average DRAM prices will rise 43% quarter-over-quarter in the second quarter of 2026, 21% in the third quarter, and 13% in the fourth quarter;For NAND, the blended average selling price is expected to rise 43% quarter-over-quarter in the second quarter, 25% in the third quarter, and 10% in the fourth quarter.Taking into account the upward revision to average selling price forecasts, UBS. has raised its operating profit forecast for SK Hynix by 7% to 327 trillion won for this year, and by 12% each for the next two years to 623 trillion won and 667 trillion won, respectively.