SK hynix emerges as SK Group’s profit engine

Jan 08, 2026, 08:08 am

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An electronic board displays SK hynix’s stock price at a securities firm in Seoul. The shares closed at 742,000 won on Jan. 7. / Yonhap

SK hynix has cemented its position as the undisputed profit leader within the SK Group, accounting for more than 95% of the group’s operating profit this year, according to market estimates.

Analysts project that SK Group’s core affiliates will generate roughly 300 trillion won in annual revenue and nearly 90 trillion won in operating profit this year, a sharp increase from about 210 trillion won in revenue and 45 trillion won in operating profit last year. At the center of this rapid growth is SK hynix, which is expected to contribute about half of group revenue and more than 95% of operating profit.

Data from FnGuide show that combined revenue from holding company SK Corp. and its non-consolidated subsidiary SK hynix is estimated at about 276 trillion won, with operating profit reaching 91 trillion won. While SK Corp.’s revenue was projected to exceed that of SK hynix by around 32% last year, forecasts for this year suggest SK hynix’s revenue could surpass SK Corp.’s by roughly 20%. Semiconductor operations alone are expected to account for 54.3% of group revenue.

SK hynix shares have surged accordingly. After starting last year in the 170,000-won range, the stock hit an intraday record of 727,000 won earlier this week and closed Wednesday up 2.2% at 742,000 won. Investment banks have set price targets in the 800,000-won range, while global investment bank Macquarie has presented an aggressive target of 1.12 million won.

The company’s market capitalization has also soared, rising from 123 trillion won in November 2024 to about 200 trillion won by June last year, then surpassing 400 trillion won in October. As of Wednesday, it stood at around 540 trillion won.

Industry observers note that SK hynix’s overwhelming presence partly reflects weakness in other key group pillars, particularly energy and future growth businesses such as batteries. SK Group’s rebalancing efforts since 2024 have centered on SK Innovation, including its merger with E&S, aimed at revitalizing the energy and secondary battery segments. However, uncertainty over the timing of a demand recovery and continued sluggishness in petrochemicals suggest the group will remain heavily dependent on SK hynix for the time being.

FnGuide estimates put SK Innovation’s revenue this year at 79 trillion won, with operating profit around 1.8 trillion won — a stark contrast to SK hynix’s performance.

Meanwhile, expectations for higher memory chip prices continue to build. Market research firm Counterpoint Research forecasts memory prices to rise 40% to 50% in the first quarter and a further 20% in the second quarter, reinforcing optimism around SK hynix’s earnings momentum.

#SK hynix #SK Group #operating profit #semiconductors