SK Hynix Launches Nasdaq ADR Trading, Eyes 8.4%-18% Upside as Valuation Discount Narrows

According to Yonhap Infomax, SK Hynix began trading American Depositary Receipts (ADRs) on Nasdaq today (July 13), shifting market focus from capital raising to potential re-rating of domestic shares. Analysts expect improved accessibility for U.S. investors and expanded global shareholder base to reduce SK Hynix's traditional valuation discount against Micron. Currently, SK Hynix trades at a 12-month forward PER of 5.52x compared to Micron's 6.77x, representing approximately 24% premium for Micron.

DS Investment Securities estimates that if SK Hynix receives Micron's valuation multiple, theoretical upside reaches 24%. After adjusting for TSMC ADR's current premium over domestic shares, domestic stock gains are calculated at minimum 8.4%. Assuming 75% of ADR gains flow to domestic shares—following TSMC precedent—upside potential reaches 18%, excluding operational improvements from higher HBM sales or memory price increases.