[Edaily Reporter SOYEON KIM ] SamsungElectronics set a record with a preliminary operating profit of 89.4 trillion won for the second quarter of this year. Amid SamsungElectronics’ historic earnings, expectations for SK hynix’s performance are also rising. In particular, as SK hynix is set to list its American Depositary Receipts (ADRs) on the Nasdaq on the 10th (U.S. time), there is speculation that these earnings will serve as a guarantee of strong initial demand for the ADR offering.

According to financial information provider FnGuide Inc. on the 8th, the consensus estimate (average of securities firms’ forecasts) for SK hynix’s second-quarter operating profit this year is 64.8227 trillion won. This would mark the first time in the company’s history that SK hynix has surpassed 60 trillion won in quarterly operating profit. Furthermore, the company is set to exceed last year’s full-year operating profit (47.2 trillion won) in a single quarter.

Looking at the first half of this year, SK hynix is expected to achieve an operating profit of nearly 65 trillion won in the second quarter, following a first-quarter operating profit of 37.6103 trillion won. The company is breaking its own record for the highest quarterly performance every quarter. Operating profit for the first half of the year alone is projected to exceed 100 trillion won.

This is the result of rising prices for standard DRAM combined with expanding sales of high-value-added products, including High Bandwidth Memory (HBM) and AI memory. SK hynix maintains its top position in the global HBM market, holding a market share of over 50%. According to Counterpoint Research, SK hynix ranked first with a 58% market share in the HBM market as of the first quarter of this year. SamsungElectronics and Micron followed, each recording a 21% share. The majority of HBM revenue is currently generated by HBM3E, and HBM4 supply is expected to ramp up in earnest starting in the second half of this year.

In particular, ahead of its ADR listing, SK hynix has begun the bookbuilding process with institutional ADR investors. It is also conducting roadshows targeting global institutional investors. In this process, the prospect of record-breaking second-quarter earnings is expected to serve as a powerful asset. Upward revisions to earnings forecasts will play a crucial role in the process of assessing the company’s value for global institutional investors.

SK hynix, which had been undervalued compared to its U.S. competitor Micron, is preparing for a Nasdaq listing backed by strong earnings prospects, and this is widely seen as optimal timing. Consequently, SK hynix’s ADRs are reportedly showing signs of strong demand. According to a Bloomberg report, demand has been strong from the outset among large institutional investors with a stable, long-term orientation and investors specializing in tech stocks. Three major investment firms—Situational Awareness Partners, Baillie Gifford, and Cotu Management—have already expressed their intention to purchase up to $7 billion worth of shares in this public offering.

SK hynix plans to issue up to 17.79 million new shares—representing approximately 2.5% of its total outstanding shares—for the ADR listing. This is expected to raise 43 trillion won.

The offering price will be finalized on the afternoon of the 9th (local time), which is before trading resumes on the 10th (Korea time). Trading of the ADRs on the Nasdaq market is scheduled to begin on the morning of the 10th. The closing price and premium level of SK hynix’s ADRs on their first day of trading—to be determined in New York that day—are expected to influence the domestic KOSPI market on the 13th, following the weekend. Stock price volatility may be high following the ADR listing in the U.S. This is because, if the ADR premium is expected to persist, volatility in SK hynix’s domestic stock price could increase.

SK hynix is scheduled to announce its second-quarter earnings toward the end of this month. SK hynix plans to allocate all funds raised through this ADR listing to capital expenditures. These include investments in the construction of a fab at the Yongin Semiconductor Cluster and the construction of the Cheongju Package & Test (P&T) 7 advanced packaging fab.