The gap in size between Samsung Electronics, which has kept the No. 1 spot in market capitalization as the unrivaled heavyweight of the domestic stock market, and SK hynix is narrowing quickly. It is the result of an explosive rise in SK hynix's share price as it leads the high value-added semiconductor market.
According to the Korea Exchange (KRX) information data system on the 18th, Samsung Electronics' market capitalization stood at 1,581.1418 trillion won on the previous trading day, on the 15th. On the same day, SK hynix's market capitalization was 1,296.4060 trillion won. The gap in market capitalization between the two companies is only 284.7358 trillion won.
The market cap gap between Samsung Electronics and SK hynix has been steadily shrinking. During the same period a year earlier, Samsung Electronics' market cap (336.2350 trillion won) was 2.2 times that of SK hynix (148.8760 trillion won). But after the semiconductor rally, as of the 15th, SK hynix's market cap has surged to 82% of Samsung Electronics'.
On a year-over-year basis, while Samsung Electronics' share price rose 376%, SK hynix climbed 789%. Even compared with the start of the year, when Samsung Electronics gained 111%, SK hynix advanced 169%.
In proportion, market capitalization rose more steeply for SK hynix. As recently as last year, SK hynix's market cap was in the 149 trillion won range, but on the 4th it topped 1,000 trillion won for the first time. After that, its market cap increased by 400 trillion won in seven trading days.
On top of that, Samsung Electronics preferred shares and SK Square are competing for the No. 3 spot in market capitalization. As of the 15th, SK Square held the No. 3 position in market cap.
At the start of the year, Samsung Electronics preferred shares had firmly held the No. 3 market cap, but as the domestic stock market began to rise sharply, it started facing threats from other large caps such as SK Square and Hyundai Motor. In particular, SK Square, which holds more than 20% equity in SK hynix, has been spotlighted as an "SK hynix alternative investment," and has recently even climbed to the status of a "emperor stock" (a stock priced at 1 million won or more per share).
Lee Jaeman, an analyst at Hana Securities, said, "SK hynix's market cap has climbed to 22% of the total KOSPI market cap," adding, "It has also risen to 85% compared with Samsung Electronics' market cap."
He added, "The end of the 2000 tech bubble appeared in a situation where, regardless of profit size and due to share price overheating, only the No. 1 company in market cap changed," and said, "Another signal of the end of the current bull market, which is based on profit growth, would be if SK hynix's market cap overtakes Samsung Electronics'."
However, some analysis suggests SK hynix will find it difficult to surpass Samsung Electronics. Lee Sangheon, Director General of iM Securities' research center, said, "For market caps to flip, SK hynix would have to rise while Samsung Electronics' share price falls, but both are climbing in line with the same semiconductor cycle."
In addition, Samsung Electronics' estimated net profit scale is projected to be larger than SK hynix's. Hana Securities projects Samsung Electronics' net profit at 280 trillion won this year and 349 trillion won next year. For SK hynix, it forecasts 208 trillion won and 272 trillion won, respectively.