SEOUL, July 31, 2026, 02:05 (KST)
- SK hynix Inc. (KRX:000660; NASDAQ:SKHY) finished down 5.6% at 1.322 million won, while its ADR gained 15.3% as of 1 p.m. EDT.
- The cross-market disparity indicated a 60.0% U.S. premium, based on the 10-to-one ADR ratio.
- Second-quarter preliminary revenue and operating profit came in 5.6% and 5.4% below consensus estimates, respectively.
On Thursday, American depositary receipts of SK hynix trading in the U.S. hovered around $146.25. This level represented nearly a 60% premium compared to the currency-adjusted value of the company’s shares listed in Seoul. Trading in Seoul was shut, while Nasdaq sessions continued.
Each Korean common share is equivalent to ten ADRs. With the local market closing at 1,446.27 won per dollar on Thursday, each ADR was valued at $91.41. The discount stood at 60.0%.
| Dual-listing measure | Reference level | Latest level | Change |
|---|---|---|---|
| Seoul common share | ₩2,186,000 as of July 9 | ₩1,322,000 as of July 30 | -39.5% |
| Nasdaq ADR | $149 offer price | $146.25 at about 1 p.m. EDT | -1.8% |
| Indicative U.S. premium | 36% as of July 13 | 60.0% as of July 30 | +24.0 points |
The prevailing premium is calculated with 10 ADRs for each common share and a rate of ₩1,446.27 per dollar. Prices on the local exchange and in the U.S. are not quoted at the same time.
The two securities lack complete fungibility, which blocks straightforward arbitrage. As a result, limited ADR availability impacts the U.S. price in addition to earnings forecasts.
The operating report delivered strong results but did not meet market expectations. Preliminary operating profit stood at 60.54 trillion won, falling 5.4% short of consensus estimates. Revenue also came in 5.6% lower than anticipated.
| Preliminary Q2 result | Actual | Consensus | Variance |
|---|---|---|---|
| Revenue | ₩79.32 trillion | ₩84.00 trillion | -5.6% |
| Operating profit | ₩60.54 trillion | ₩64.00 trillion | -5.4% |
| Operating margin | 76% | — | — |
The company stated that its second-quarter results are still preliminary and pending audit.
Indicators of demand remained solid. “Major customers are still requesting more memory supply,” President Song Hyun-jong said. SK hynix has completed long-term deals with about 10 customers. These contracts usually last for five years. Reuters
HBM4 entered mass shipment in the quarter. Output is expected to ramp up in the latter half. The broader quarterly comparison continues to indicate strong operational expansion.
| Metric | Q2 2026 | Q1 2026 | Q2 2025 | Quarter-on-quarter | Year-on-year |
|---|---|---|---|---|---|
| Revenue | ₩79.32tn | ₩52.58tn | ₩22.23tn | up 51% | up 257% |
| Operating profit | ₩60.54tn | ₩37.61tn | ₩9.21tn | up 61% | up 557% |
| Net income | ₩93.92tn | ₩40.35tn | ₩7.00tn | up 133% | up 1,242% |
The operating margin rose to 76%, up from 72% in the first quarter.
Headline net profit requires scrutiny. Gains from investment assets amounted to 63.3 trillion won, representing roughly 67% of headline net income. Analysts attributed this increase to a recently finalized sale of a stake in a NAND firm.
Cash and cash equivalents stood at 88 trillion won. Debt fell to 18.6 trillion won, resulting in net cash of 69.4 trillion won. Annual capital expenditure is approaching the high-40-trillion-won band, up from 30.2 trillion won a year earlier.
Information on distributions to investors has been limited. “SK needs to come up with a concrete shareholder return policy to turn around investor sentiment,” said Greg Roh of Hyundai Motor Securities Co. (KRX:001500). SK hynix intends to give an update later this year. Reuters
Chairman Chey Tae-won acquired 3,620 shares at a cost of around 4.8 billion won, marking his initial direct purchase. The amount represents approximately 0.0069% of the company’s net cash. The move suggests confidence, although it is not a substitute for a formal payout policy.
The drop in Seoul was driven by more than just fundamentals. The broader selloff was exacerbated by the liquidation of leveraged retail trades. Nonetheless, SK hynix fell 24.8% over the five sessions ending Thursday.
| Seoul session | Closing price | Daily move |
|---|---|---|
| July 24 | ₩1,759,000 | -8.34% |
| July 27 | ₩1,816,000 | +3.24% |
| July 28 | ₩1,550,000 | -14.65% |
| July 29 | ₩1,401,000 | -9.61% |
| July 30 | ₩1,322,000 | -5.64% |
The drop over two sessions after the results amounted to 14.7%.
Peer share price movements highlighted the differences. Samsung Electronics Co. Ltd. KRX:005930 slipped just 0.7% on Thursday, after revealing five-year minimum pricing agreements and ongoing talks regarding special dividends. SK hynix dropped 5.6% at the close.
The ADR recovery faces a test in Seoul on Friday. Increased margin requirements for single-stock leveraged products are also set to begin. July trade figures are due Saturday, with exports expected to climb 59% from a year earlier. Semiconductor shipments grew 180.6% in the first 20 days of July.
Risks persist. The ADR premium may narrow suddenly. Long-term agreements might restrict further price increases, and increased expenditure could reignite fears of oversupply. Second-quarter net profit was also boosted by investment gains that are unlikely to recur.
