When SK hynix Rose 1,200%, This Stock Soared 1,800%... Headed for 1.85 Million Won [Click e-Stock]

SK Securities has raised its target price for SK Square from 1.45 million won to 1.85 million won. The investment rating remains at "buy."

On June 18, Choi Gwan-soon, an analyst at SK Securities, stated, "Expectations remain valid for an increase in the value of its equity holdings and for expanded shareholder returns."

SK Square's share price has surged even more than that of its subsidiary, SK hynix. As of the closing price on June 16, SK Square's share price stood at 1,501,000 won, marking a 1,809.7% increase compared to the beginning of last year. During the same period, SK hynix rose by 1,291.4%. On June 17, SK Square's market capitalization surpassed 200 trillion won.

Amid news of expanded shareholder returns from SK hynix, expectations for shareholder returns from SK Square are also growing. Analyst Choi commented, "SK hynix is considering various shareholder return measures to enhance shareholder value, but the company disclosed that there are no concrete plans yet regarding the size or specifics of the shareholder returns." He also added, "With free cash flows expected to reach 146 trillion won this year and 240 trillion won next year, expectations for shareholder returns will inevitably grow, and accordingly, SK Square is also likely to increase its shareholder returns."

In addition, the net asset value (NAV) discount rate, a key indicator of holding company enterprise value, has been improving. The NAV discount rate fell from 65.7% in 2024 and 51.5% last year to the 40% range recently.

Analyst Choi noted, "While the upward trend in SK hynix's share price is likely to continue, the gap between the inclusion limit and the actual weighting for SK hynix may drive continued institutional buying of SK Square shares."

This content was produced with the assistance of AI translation services.