SK Square rose to an intraday 52-week high on Wednesday, lifted by strength in shares of chipmaker SK Hynix.
According to the Korea Exchange, SK Square was trading at 845,000 won as of 1:39 p.m., up 15,000 won, or 1.81%, from the previous session. The stock climbed as high as 877,000 won during the session, setting a new 52-week high.
The move was widely seen as reflecting expectations that SK Square’s stake value will rise as SK Hynix shares advance. SK Square is SK Hynix’s largest shareholder with a 20.5% stake and is a holding company focused on investments in information and communications technology, artificial intelligence and semiconductors.
Brokerage optimism also continued.
NH Investment & Securities said in a report Wednesday that it raised its target price for SK Square to 1.10 million won from 740,000 won, citing a strong semiconductor cycle and what it described as a virtuous cycle of shareholder returns. It maintained a “buy” rating.
Ahn Jaemin, an analyst at NH Investment & Securities, said SK Hynix — which accounts for an “absolute” share of SK Square’s net asset value — has continued a steep rise on the back of favorable semiconductor conditions, adding that SK Square’s corporate value has been rising in tandem.
Ahn said the stock’s high sensitivity reflects expectations that business expansion, including additional mergers and acquisitions within the semiconductor value chain, could emerge around SK Square. He also cited an active shareholder-return policy, including annual share buybacks and cancellations.
He added that the company plans a 200 billion won cash dividend this year and said SK Square’s relatively smaller market-cap weight than SK Hynix offers a supply-and-demand advantage for benchmark-tracking institutional investors seeking to increase exposure.
Ahn also said the semiconductor industry is undergoing structural change as diversified memory is adopted in line with a trend he called “layering of computation,” arguing that demand is unlikely to fade quickly. He said that supports expectations for further gains in SK Hynix shares and, in turn, SK Square’s corporate value.
* This article has been translated by AI.
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