SK Hynix target price of 145ten thousand won, SK Square also affected

SK Securities on 19raised its target price for SK Hynix from 74ten thousand won to 145ten thousand won. It maintained its Buy rating. The reasons cited for the target price increase included improved earnings at SK Hynix and the issuance of overseas depositary receipts.

Researcher Kwan-soon Choi said SK Square's 1quarterly results included record-high quarterly consolidated operating profit. An increase in equity-method income from SK Hynix was cited as the reason. Equity-method income is an accounting item that reflects a portion of the profits of a company in which a stake is held.

Last 2month, SK Hynix canceled 2.1% of its treasury shares. Treasury shares are shares that a company has bought and holds itself. Cancellation is the process of eliminating those shares to reduce the number of shares outstanding.

Researcher Choi explained that after this cancellation, SK Square's stake in SK hynix stood at 20.1%, from 20.5%, rising slightly to. SK Square is an investment company that holds a stake in SK hynix. This was presented alongside the explanation that the value of SK hynix shares accounts for a large portion of SK Square's valuation.

SK hynix was said to account for 98.6% of the value of SK Square's holdings. Researcher Choi explained that, as a result, SK Square's share price also tends to move in tandem with SK hynix's to a significant degree. The report emphasized that an improvement in SK hynix's earnings is linked to changes in SK Square's value.

SK hynix's share of the KOSPI's total market capitalization was cited as 22.1%. The market capitalization share of SK hynix disclosed by the Korea Financial Investment Association in 5 was 15.7%. Market capitalization share is the proportion of the total value of a company's shares represented in an index.