SK Hynix stocks fell 6.19% to 2,045,000 won as of 9:46 AM on July 13, extending losses from an initial 3% decline at market open. The drop followed Korea Investment & Securities' downward revision of the company's Q2 2026 operating profit estimate to 60.4 trillion won, approximately 8% below market consensus of around 65 trillion won, alongside geopolitical tensions as Iran continued attacks on vessels in the Hormuz Strait and the US conducted airstrikes on Iran over the weekend. The decline contrasts sharply with SK Hynix's ADR performance on Nasdaq, where shares closed 12.76% above the $149 offering price at $168.01 on July 10, reflecting divergent investor sentiment between US and Korean markets amid heightened risk aversion.
SK Hynix ADR Gains 12.76% on Nasdaq Debut Contrasting Korean Stock Decline
SK Hynix's American Depositary Receipt (ADR) closed at $168.01 on July 10, marking a 12.76% gain from its $149 offering price in its first day of trading on Nasdaq. This performance stands in sharp contrast to the stock's 6.19% decline in Seoul on July 13, where shares traded at 2,045,000 won as of 9:46 AM, down 135,000 won from the previous session.
Korea Investment & Securities Cuts SK Hynix Profit Estimates for 2026-2027
Korea Investment & Securities lowered SK Hynix's Q2 2026 operating profit estimate to 60.4 trillion won, approximately 8% below the market consensus of around 65 trillion won. The brokerage also reduced its 2026 and 2027 annual operating profit estimates by 9% and 11% respectively from previous forecasts.
Researcher Min-sook Chae of Korea Investment & Securities explained the Q2 estimate cut: "Because the proportion of high-bandwidth memory (HBM) sales is higher compared to competitors, the average selling price (ASP) growth rate is lower than the market average." Regarding the annual estimate revisions, Chae stated: "This is not a concern about performance, but rather a result of making price assumptions more realistic based on concluded long-term supply agreements (LTA). As the memory industry shifts to a 3-5 year LTA contract structure, corporate value will be determined by how long high profitability is sustained rather than quarterly ASP growth rates."
Samsung Electronics Stocks Fall 1.40% Amid Sector Weakness
Samsung Electronics stocks declined 1.40% to 281,000 won on July 13, down 4,000 won from the previous session. Samsung Electronics is considered the biggest beneficiary of memory price increases due to its significantly higher DRAM production volume compared to SK Hynix, according to the source.
KB Securities Research Division Head Dong-won Kim stated: "Samsung Electronics' operating profit is expected to reach 110 trillion won in Q3 and 124 trillion won in Q4, showing an expanded improvement from Q2." The brokerage raised its profit estimates for Samsung Electronics on the same day.
FAQ
What caused SK Hynix stocks to fall 6.19% on July 13?
SK Hynix stocks fell 6.19% to 2,045,000 won as of 9:46 AM on July 13 following Korea Investment & Securities' downward revision of the company's Q2 2026 operating profit estimate to 60.4 trillion won, approximately 8% below market consensus. Geopolitical tensions from Iran's attacks on Hormuz Strait vessels and US airstrikes on Iran over the weekend also contributed to risk aversion in the market.
How did SK Hynix's ADR perform on Nasdaq compared to its Korean stock?
SK Hynix's ADR closed at $168.01 on July 10, gaining 12.76% from its $149 offering price on its first Nasdaq trading day. This contrasts with the Korean stock's 6.19% decline to 2,045,000 won on July 13, reflecting divergent sentiment between US and Korean markets.
Why did Korea Investment & Securities lower SK Hynix's profit estimates?
Korea Investment & Securities cut SK Hynix's Q2 2026 operating profit estimate to 60.4 trillion won (8% below consensus) and reduced 2026 and 2027 estimates by 9% and 11% respectively. Researcher Min-sook Chae explained that SK Hynix's higher HBM sales proportion results in lower ASP growth compared to competitors, and the revisions reflect realistic pricing based on concluded long-term supply agreements rather than performance concerns.
