Analyst: SK Hynix may receive valuation boost due to listing of American Depositary Receipts

Kim Young-gun, of Future Asset Securities, said that SK Hynix could potentially see a boost in valuation this year through the listing of American depositary receipts. In a report, the analyst wrote that the listing of the South Korean chip manufacturer's ADRs may highlight the valuation gap between its local trading stock in Korea, potentially increasing the stock's valuation. He pointed out that SK Hynix's valuation is relatively lower compared to American peers such as Micron Technology. The South Korean company's expected P/E ratio is around 5.9 times, while Micron Technology is at 7.8 times. He added that the company may issue new shares equivalent to 2.5% of its existing shares to support the ADR listing and raise up to 15 trillion Korean won.