Morningstar Maintains Fair Value of SK Hynix ADR at $160, Valuation Reasonable

Morningstar analyst Jing Jie Yu stated that the fair value estimate for each SK Hynix ADR is $160. After a long-term cyclical risk assessment, it is believed that the valuation is at a reasonable level. SK Hynix plans to use the 40 trillion won raised from this listing for future wafer fab investments, but analysts pointed out that the primary purpose of this listing is to enhance valuation rather than to address urgent financing needs. SK Hynix's valuation multiples have long been below those of its American peers, and the existing cash is expected to be sufficient to meet investment demands. Morningstar expects SK Hynix's EBITDA for 2026 and 2027 to reach 317 trillion won and 474 trillion won, respectively, far exceeding the scale of this fundraising, thus the financing's actual contribution to capacity investment is limited and more symbolic. Morningstar believes that the earnings trajectory of memory chip manufacturers is highly unpredictable, and SK Hynix ADRs and Korean-listed stocks may continue to experience significant volatility, maintaining a rating of "extremely high uncertainty" for the company.

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