Morningstar maintains SK Hynix ADR's fair value estimate at $160, indicating that the valuation is at a reasonable level.

BlockBeats News, July 14th — Morningstar analyst Jing Jie Yu stated that the bank maintains SK Hynix's ADR fair value estimate at $160 per share. After assessing long-term cyclical risks, it is believed that the valuation is at a reasonable level. SK Hynix plans to use the 40 trillion KRW raised in this IPO for future semiconductor factory investments. However, the main purpose of this IPO is to boost valuation rather than address urgent financing needs. The valuation multiple of Korean memory chip companies has long been lower than their U.S. counterparts, and 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) for 2026 and 2027 to reach 317 trillion KRW and 474 trillion KRW, respectively, far exceeding the size of this fundraising. Morningstar believes that the profit trend of memory chip manufacturers is highly unpredictable, and SK Hynix's ADR and Korean listed stocks may continue to experience significant fluctuations. Therefore, the company's rating of "extreme uncertainty" is maintained.