UBS recommends buying SK Hynix's upcoming ADRs and selling its Seoul-listed shares.
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Sources indicate that SK Hynix will close its $28 billion ADR book-building process on Wednesday due to oversubscription.
According to Mars Finance, an insider revealed that SK Hynix will close the book-building process for its $28 billion American Depositary Receipts (ADRs) on Wednesday (US time), as subscription orders have been oversubscribed several times. The source stated that this offering by the South Korean chipmaker is one of the largest IPOs in history globally. Its underwriters have informed investors that the book-building will close at 4 p.m. Eastern Time, pricing guidance will be released after the close of the South Korean stock market on Thursday, and the allocation results will be finalized later on Thursday (US time). SK Hynix previously stated in a filing that it would determine the final price of its ADRs on Thursday and begin trading on Nasdaq on July 10. The source said that US investors submitted large orders, with minimum orders around $200 million and some exceeding $1 billion. (Cailian Press)
UBS raised its target price for SK Hynix to 3.2 million won and maintained its buy rating.
According to a report by Odaily, SK Hynix is continuing to push for more revised long-term agreements, focusing on DDR5 and NAND Flash for hyperscale data center customers. These contracts have terms exceeding five years, with approximately 60% to 70% of the expected volume and price already locked in, which will improve future earnings visibility. Based on a projected price-to-book ratio of 3.65 for the next 12 months, UBS has raised its target price for SK Hynix from 3 million won to 3.2 million won and maintained its buy rating. SK Hynix began ramping up HBM4 shipments for its Rubin platform in the second quarter, indicating that it has completed final design adjustments to meet specifications. While Samsung Electronics' HBM bit market share may be slightly higher than SK Hynix's in 2027 (41% vs. 39%), in the long term, HBM's share in SK Hynix's DRAM business is expected to be higher than its peers. UBS predicts that HBM's share of DRAM revenue will rise from 15% in 2026 to 58% in 2030. Further increases in the average selling price of HBM will provide additional support for profitability in 2027. UBS stated that shareholder reward policies are expected to continue to strengthen, and anticipates share buybacks to begin after the ADR listing and gradually accelerate. UBS points out that DDR and NAND Flash contract pricing still has room for further increases in the second half of 2026. Considering the revised long-term agreements and HBM, UBS forecasts a 43% quarter-on-quarter increase in DRAM average selling prices in Q2 2026, a 21% increase in Q3, and a 13% increase in Q4; for NAND, it expects a 43% quarter-on-quarter increase in the mixed average selling price in Q2, a 25% increase in Q3, and a 10% increase in Q4. Taking into account the upward revision of average selling price forecasts, UBS has raised its SK Hynix operating profit forecast by 7% to 327 trillion won this year, and by 12% each for the next two years to 623 trillion won and 667 trillion won.
After a slight rebound, SK Hynix faced increased selling pressure, with suspected short-selling activity exceeding $12 million.
According to BlockBeats, on July 7th, Hyperinsight monitoring showed that after a sharp drop, South Korean semiconductor stocks rebounded slightly. However, SK Hynix (SKHX) on Hyperliquid did not show a stronger buy the dips level, and larger sell orders were placed above the rebound. Based on a distance of $50 from the current price, there are approximately $14.19 million in sell orders above $1512 on SKHX, and approximately $8.457 million in buy orders below $1412. The size of the sell wall is approximately 1.68 times that of the buy wall. The most concentrated sell orders were located in the $1610 to $1650 range, totaling 81 orders, approximately 7536,813 lots, with a notional amount of approximately $12.189 million. The buy orders in the $1300 to $1390 range below amounted to approximately $5.737 million, with the buying volume significantly lower than the sell pressure above. - HyperInsight Bot is now live. Add @HyperInsightBot to the Telegram community and set it as an administrator (message sending permission required) to automatically sync on-chain information.
SK Hynix's US ADR listing was oversubscribed and will close for subscription at midnight Beijing time on the 9th.
PANews reported on July 6 that SK Hynix's US ADR listing was oversubscribed, and SK Hynix will stop accepting subscriptions at 4 p.m. New York time on July 8.
SK Hynix: Several funds, including Baillie Gibbs, have expressed interest in purchasing up to $7 billion in ADRs.
Odaily Odaily reports: SK Hynix: Baillie Gifford Overseas Limited, a fund managed by Coatue Management, and Situational Awareness Partners LP have expressed interest in purchasing up to $7 billion in ADRs. (Golden Ten)
SK Hynix listed $29 billion worth of ADRs on Nasdaq on the 10th, setting a new record for the largest ADR listing by a foreign company.
SK Hynix is reportedly set to list approximately 44 trillion won worth of American Depositary Receipts (ADRs) on Nasdaq, challenging the record for the largest foreign company listing on the US stock market. Following its Nasdaq listing, SK Hynix will be able to trade on the regulated US market and qualify for inclusion in major indices such as the Nasdaq 100. The inflow of funds into exchange-traded funds (ETFs) tracking these indices is also highly anticipated. However, some voices have warned whether the rapid rise in the AI storage semiconductor sector is overheated. As large technology companies continue to raise funds for data center investments through the bond and stock markets, concerns about the sustainability of the storage industry's boom are growing. (Jiemian)