Morningstar keeps its SK Hynix ADR fair value estimate at $160, saying the valuation is reasonable.

Deep Tide TechFlow news. On July 14, Jing Jie Yu, a Morningstar stock analyst, said the firm maintains its fair value estimate for SK hynix ADRs of $160 per ADR. After assessing long-term periodic risks, the analyst believes the valuation is reasonable. SK hynix plans to use 40 trillion won raised in this listing for future wafer-fab investments. However, the analyst noted that the main purpose of this listing is to enhance valuation, not to address an urgent need for financing.

Valuation multiples for South Korean memory-chip companies have long been lower than those of U.S. peers, while SK hynix’s existing cash is expected to be sufficient to meet investment needs. Morningstar expects SK hynix’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach 317 trillion won in 2026 and 474 trillion won in 2027, both far above the size of this fundraising. Therefore, the actual contribution of this financing to capacity investment is limited; it is more symbolic, though the use of funds remains reasonable. Looking ahead, Morningstar believes the profitability trend of memory-chip manufacturers is highly unpredictable. SK hynix’s ADRs and its listed South Korean shares may continue to swing sharply, so the firm maintains a rating of “extremely high uncertainty” for the company. (Jin10)