NH Investment more than doubles SK Square target price to 2.7 million won

NH Investment maintained its buy rating on SK Square while sharply raising its target price from 1.1 million won to 2.7 million won.

Analyst An Jae-min said in a report Monday that SK Hynix's share price — which accounts for the dominant share of SK Square's net asset value — continues to rise, and that investor demand for maximum semiconductor exposure within a portfolio is driving a parallel increase in SK Square's corporate value. "We have recalculated the target price based on SK Hynix's own target price," he said.

NH Investment arrived at its valuation by combining the equity value of SK Square's listed holdings — including SK Hynix and Dreamus — at 467.535 trillion won, with the equity value of unlisted subsidiaries such as T Map Mobility, FSK L&S and CS T1 at 4.035 trillion won. After subtracting net debt of 794 billion won, the firm put SK Square's total enterprise value at 474.363 trillion won. Net asset value per share was estimated at 3.57964 million won. An applied a 25 percent holding company discount to arrive at an intrinsic value of 2.68473 million won per share, setting the target price at 2.7 million won.

SK Square's growth strategy is also shifting toward semiconductors, An said. "SK Square's business direction is proceeding in line with SK Group's semiconductor-focused growth strategy," he said. "The company is consistently reviewing expansion into businesses that can generate synergies with SK Hynix within the semiconductor value chain."

An also highlighted the investment capacity that could come from higher dividends. He said shareholder return policies are expected to strengthen following SK Hynix's issuance of American depositary receipts, and that if SK Hynix's dividend per share rises to 13,000 won, SK Square would receive 1.9 trillion won in dividend income — funds it could deploy for active mergers and acquisitions.

SK Square has been consistently returning capital to shareholders. The company paid a cash dividend of 1,500 won per share in June, distributing a total of 204.3 billion won to shareholders. It also plans to buy back 40 billion won worth of its own shares in 2026 and 70 billion won in 2027.

An forecast that the semiconductor industry's upcycle will continue for now. "In the era of agentic AI, the importance of tokens and CPUs is coming to the fore, and the significance of both cloud and edge devices is expected to grow," he said. "Demand is rising across the board — not only for HBM but also for server DRAM, SRAM, eSSD and LPDDR (SOCAMM)."

He added that the amount of DRAM capacity required by a single AI inference server continues to grow and that HBM prices are rising consistently. "This is expected to drive further gains in SK Hynix's share price, with SK Square's corporate value set to rise in tandem," he said.

Market analysts say SK Square is reinforcing its identity as a semiconductor investment platform rather than a simple holding company. If AI-driven memory chip demand and improving earnings at SK Hynix continue, analysts say a sustained rerating of SK Square's corporate value is possible — as rising portfolio equity value, higher dividends and fresh investment capital could all materialize at once.

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