NH Investment & Securities said on the 28th that SK hynix's share price rise is moving in tandem with the increase in SK Square's corporate value. It maintained a Buy rating and raised the target price to 570,000 won from 450,000 won. SK Square's previous closing price was 473,000 won.
NH Investment & Securities said it raised the target price to reflect the share price rise of SK hynix, which has the largest weight within net worth (NAV).
Ahn Jae-min, an analyst at NH Investment & Securities, said, "Ahead of its fourth-quarter earnings release, SK hynix is still seeing continued upward revisions to estimates, and the share price is also rising," and noted, "Not only NAND but also DRAM prices have risen, and a favorable exchange-rate effect for exporting corporations is also affecting results."
NH Investment & Securities forecast SK hynix's operating profit this year at 105.5 trillion won. That would be up 133.1% from a year earlier.
Ahn estimated SK hynix's dividend per share this year at 2,100 won. Based on that, SK Square is projected to receive 368 billion won.
Ahn said, "SK Square is expected to use this to actively pursue investments in corporations within the semiconductor value chain and shareholder returns," adding, "Investments in semiconductor companies are set to become more flexible due to changes in the Korea Fair Trade Commission's holding company regulations, and considering the 200 billion won in treasury shares bought last year, it should be possible to buy back and cancel at least 200 billion won in treasury shares this year."