SK Hynix ADR Listing Raises Possibility of Easing the Korea Discount
SK Hynix’s listing of American depositary receipts (ADRs) is being discussed as an opportunity to ease the Korea discount. Data showed that SK Hynix’s forward 12-month forward price-to-earnings ratio (PER) stood at 4.8times, showing a wide gap with the industry average.
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SK Hynix’s listing of American depositary receipts (ADRs) is being discussed as an opportunity to ease the Korea discount. The possibility that access for overseas investors could change was presented as the key basis for the discussion.
The Korea discount refers to the tendency of Korean companies to trade at lower valuations than global companies because of the opacity of corporate governance and group structures.
Data showed that SK Hynix’s forward 12-month forward price-to-earnings ratio (PER)4.8 stood at times.
was 29.84times, and Micron Technology’s forward P/E was 6.6times.
An American depositary receipt (ADR) is a certificate issued in the U.S. market based on Korean shares. ADRs make it relatively easier for overseas investors to invest in the relevant company in dollars.
In this discussion, the figures above and the comparative indicators were used as a basis for assessing the possibility of easing the Korea discount.
The company has not yet publicly disclosed any official filings related to plans or schedules for a listing.
The key indicators presented as relevant to investment decisions were forward P/E and differences in trading accessibility between overseas and domestic markets.
Sources: 연합인포맥스
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