SK Hynix
SK Group’s combined market capitalization surpassed 1,000 trillion won ($700 billion) for the first time ever. A sharp rally in shares of SK hynix (000660.KS), which is scheduled to report earnings on Oct. 23, served as the key driver lifting the group’s overall market value.
According to the Korea Exchange, SK Group’s total market capitalization reached 1,027.27 trillion won on Monday. SK hynix alone accounted for 831 trillion won, or more than 80% of the group’s total, representing an overwhelming share.
SK hynix shares have extended their steep rally ahead of the first-quarter earnings announcement. The stock climbed as high as 1.175 million won during intraday trading, surpassing its previous all-time high of 1.173 million won. SK Square, the group’s intermediate holding company, also rose 2.79% to close at 701,000 won, crossing the 700,000-won mark for the first time. Its market capitalization ranked fifth on the KOSPI.
The market views earnings expectations as the key factor driving SK hynix’s rally. Analysts project SK hynix’s first-quarter operating profit at 35 trillion to 37 trillion won. While a record quarterly performance appears likely, some analysts have raised the possibility of the figure exceeding 40 trillion won. That would approach the company’s full-year operating profit of 47.21 trillion won in 2024. Amid rising memory prices, some forecasts suggest second-quarter operating profit could reach 61 trillion won or more.
Brokerages have set target prices ranging from 1.5 million to 1.7 million won, with SK Securities going as high as 2 million won, reflecting further upside potential. “Earnings growth expectations centered on high-bandwidth memory (HBM) remain intact,” said Jung Woo-sung, an analyst at LS Securities. “Mid- to long-term growth potential could be priced in ahead of major supply-demand events such as a U.S. American depositary receipt (ADR) listing.”