In June, KRW 2.1 million to KRW 1 million
In the KRW 300,000 range earlier this year, the price of securities skyrocketed
“expectation of shareholder return policy”

SK Square headquarters T Tower. [Yonhap News] ė‚Žė§„ 확대 SK Square headquarters T Tower. [Yonhap News]

SK Square, which once saw its stock price rise steeply with SK Hynix, fell sharply from its peak with Knicks. The stock price once rose to the 2 million won level and now stands at 1 million won, and the stock market lowers its target stock price, but it has expectations for future shareholder return policies.

SK Square, which rose to 2.126 million won as of the closing price on June 22, has continued to fall since then and fell to 800,000 won at the end of July. Since then, it has continued to range from 900,000 won to 1 million won and closed at 1,038,000 won on the 4th of this month.

SK Square’s stock price seems to be undergoing a correction after rising significantly this year. SK Square, which closed at 396,500 won on January 2, soared to the 2 million won range, but is now halved from its peak.

SK Square is a holding company of SK Hynix, which was dividedly listed from SK Telecom in 2021. SK Square’s surge this year seems to have been affected by active shareholder return policies such as treasury stock purchases and incineration, and the soaring stock prices of SK Hynix, which accounts for most of the asset value.

The stock market has recently lowered SK Square’s target stock price. As SK Hynix’s stock price has recently been greatly adjusted and the stock market has also released a report that lowered its target stock price, SK Square, a holding company, will also be affected.

NH Investment & Securities lowered SK Square’s target stock price to 2.28 million won from 2.7 million won at the end of last month. SK Square shares are also on the decline due to SK Hynix’s stock price adjustment. However, considering the demand for artificial intelligence (AI), it is predicted that the reaction industry will not end as it is. He also pointed out that SK Square’s stock price elasticity was higher in the last upward phase, so its attractiveness will be highlighted when it rebounds.

Ahn Jae-min, a researcher at NH Investment & Securities, said, “The semiconductor industry is still positive, but the stock price has been adjusted once due to concerns over SK Hynix’s peak profit (slow growth after the peak),” adding, “We believe that concerns over limiting the rise in memory prices due to long-term contracts (LTA) are excessive and demand for AI infrastructure is still solid.”

In addition, a report was released earlier this month that launched a corporate analysis (coverage) of SK Square’s target stock price of 1.5 million won. IBK Investment & Securities recently initiated coverage with a target stock price of 1.5 million won, saying SK Square’s shareholder return policy will be further strengthened. The background of strengthening shareholder returns is SK Hynix’s earnings growth, which is expected to reflect the increase in corporate value in stock prices due to SK Hynix’s expansion of shareholder returns.