Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>Q4 FY2026 revenue of $8.97bn (+51% QoQ, +372% YoY) and non-GAAP EPS of $39.25 beat guidance and consensus; Q1 FY2027 revenue guidance of $10.55bn came in below Street's $10.62bn.</li>
<li>New Business Model backlog rose to $93.9bn minimum contracted revenue across 8 customers, with RPO of $91.1bn pro forma including deals signed after quarter-end.</li>
<li>
We upgrade to BULLISH, TP US$1,860, set at 10x FY2027E EPS of $186 — a 10% discount to Micron's 11x, reflecting SanDisk's NAND-only exposure without HBM optionality. </li>
</ul>


Q4 FY2026 revenue of $8.97bn (+51% QoQ, +372% YoY) and non-GAAP EPS of $39.25 beat guidance and consensus; Q1 FY2027 revenue guidance of $10.55bn came in below Street's $10.62bn.
New Business Model backlog rose to $93.9bn minimum contracted revenue across 8 customers, with RPO of $91.1bn pro forma including deals signed after quarter-end.

We upgrade to BULLISH, TP US$1,860, set at 10x FY2027E EPS of $186 — a 10% discount to Micron's 11x, reflecting SanDisk's NAND-only exposure without HBM optionality. 


SanDisk (SNDK US): 4QFY26 Results Beat, Guidance Missed on the Margin — Upgrade to BULLISH

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing.</li>
<li>SKH has confidentially filed for an ADR issuance which could see it potentially launch a raising in July 2026, as per media reports.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing.
SKH has confidentially filed for an ADR issuance which could see it potentially launch a raising in July 2026, as per media reports.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Aequitas: SK Hynix ADR Listing - Part 1 - Early Look at the US$10-15bn Offering

Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Today, investors received shares in the new SanDisk spin-off.</li><li>Shares are currently slightly up due to buying pressure ahead of the stock being added to the S&amp;P 600 index effective tomorrow.</li><li>SanDisk is trading at 1.1x revenue which is a reasonable valuation (Xioxia, Sandisk’s JV partner, trades at 1.3x LTM revenue).<figure class="editor-figure mceNonEditable"></figure></li></ul>

Today, investors received shares in the new SanDisk spin-off.Shares are currently slightly up due to buying pressure ahead of the stock being added to the S&amp;P 600 index effective tomorrow.SanDisk is trading at 1.1x revenue which is a reasonable valuation (Xioxia, Sandisk’s JV partner, trades at 1.3x LTM revenue).

<ul>
<li>Small caps generally trade between a 50% discount to the S&amp;P 500 and a 50% premium. The current discount is 22%.</li>
<li>Relative periods of outperformance tend to last for waves of at least 13 years.</li>
<li>The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.</li>
</ul>


Small caps generally trade between a 50% discount to the S&amp;P 500 and a 50% premium. The current discount is 22%.
Relative periods of outperformance tend to last for waves of at least 13 years.
The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.


<ul>
<li>Only US-listed pure-play NAND vehicle with fab-light Flash Ventures JV economics; NBM framework (US$42bn RPO, US$11bn financial guarantees) is a genuine structural break from commodity cyclicality — if it holds.</li>
<li>Q4 FY2026 earnings (13 Aug) is binary — confirm margins and upgrade to BUY, miss and downgrade to SELL.</li>
<li>HOLD, US$1,950 PT (blended 60% forward P/E 35x FY2026E EPS US$65 + 40% EV/EBITDA 27x); HBF optionality (consensus zero value) is the asymmetric upside not in the multiple.</li>
</ul>


Only US-listed pure-play NAND vehicle with fab-light Flash Ventures JV economics; NBM framework (US$42bn RPO, US$11bn financial guarantees) is a genuine structural break from commodity cyclicality — if it holds.
Q4 FY2026 earnings (13 Aug) is binary — confirm margins and upgrade to BUY, miss and downgrade to SELL.
HOLD, US$1,950 PT (blended 60% forward P/E 35x FY2026E EPS US$65 + 40% EV/EBITDA 27x); HBF optionality (consensus zero value) is the asymmetric upside not in the multiple.


SANDISK CORPORATION (SNDK US): Initiate with a NEUTRAL (TP US$1,950)

United States

SanDisk Corporation designs, develops, and manufactures data storage solutions in a variety of form factors using our flash memory, proprietary controller and firmware technologies. The Company's solutions include removable cards, embedded products, universal serial bus, or USB, drives, digital media players, wafers and components.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sandisk Corp (SNDK US)

SanDisk (SNDK US): 4QFY26 Results Beat, Guidance Missed on the Margin — Upgrade to BULLISH

SanDisk beat Q4 and guided light on Q1 revenue. Shares fell 12%, but earnings power grew faster than the drop. Upgrade to BULLISH, TP US$1,860 (10x...

Mo Aziz

Aequitas: SK Hynix ADR Listing - Part 1 - Early Look at the US$10-15bn Offering

SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing. As per media reports, it has filed...

Sumeet Singh

[Alert] Sell Sandisk Spin-off

Today, investors received shares in the new SanDisk spin-off. Shares are currently slightly up due to buying pressure ahead of the stock...

Richard Howe

Weekly Update (WDC, SNDK, MRP, IAC)

Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%. Relative periods of outperformance...

Richard Howe

SANDISK CORPORATION (SNDK US): Initiate with a NEUTRAL (TP US$1,950)

US-listed NAND vehicle with unique economics faces pivotal Q4 earnings, HOLD with potential upside from HBF optionality.

Mo Aziz

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SanDisk (SNDK US): 4QFY26 Results Beat, Guidance Missed on the Margin — Upgrade to BULLISH

SanDisk beat Q4 and guided light on Q1 revenue. Shares fell 12%, but earnings power grew faster than the drop. Upgrade to BULLISH, TP US$1,860 (10x...

Mo Aziz

Aequitas: SK Hynix ADR Listing - Part 1 - Early Look at the US$10-15bn Offering

SK Hynix (000660 KS) (SKH), a leading global memory producer, aims to raise over US$10bn via an ADR listing. As per media reports, it has filed...

Sumeet Singh

[Alert] Sell Sandisk Spin-off

Today, investors received shares in the new SanDisk spin-off. Shares are currently slightly up due to buying pressure ahead of the stock...

Richard Howe

Weekly Update (WDC, SNDK, MRP, IAC)

Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%. Relative periods of outperformance...

Richard Howe

SANDISK CORPORATION (SNDK US): Initiate with a NEUTRAL (TP US$1,950)

​US-listed NAND vehicle with unique economics faces pivotal Q4 earnings, HOLD with potential upside from HBF optionality.

Mo Aziz

US-listed NAND vehicle with unique economics faces pivotal Q4 earnings, HOLD with potential upside from HBF optionality.