Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>Reuters leaks SK Hynix-Intel talks on U.S. memory production (Ohio lease or hyperscaler JV); SK Hynix's same-day statement denies specifics, not the underlying talks.</li>
<li>Chairman Chey (Jul) and CEO Kwak (Aug) already signalled U.S. capacity and a 2030 shortage — this "leak" is management's own thesis, not new information.</li>
<li>BULLISH maintained; TP KRW2,700,000, based on 10x FY27E earnings. Ohio plant optionality not yet in the number.</li>
</ul>


Reuters leaks SK Hynix-Intel talks on U.S. memory production (Ohio lease or hyperscaler JV); SK Hynix's same-day statement denies specifics, not the underlying talks.
Chairman Chey (Jul) and CEO Kwak (Aug) already signalled U.S. capacity and a 2030 shortage — this "leak" is management's own thesis, not new information.
BULLISH maintained; TP KRW2,700,000, based on 10x FY27E earnings. Ohio plant optionality not yet in the number.


SK HYNIX (000660 KS / SKHY US): Much Ado About Nothing - The SK Hynix-Intel Non-Denial

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Local concerns are resurfacing over Hynix and Samsung’s low utilization, with further GMR cuts potentially exposing deliberate production curbs, though KRW strength remains supportive for buybacks.</li>
<li>Hynix and Samsung’s dollar selling may be slowing as FX driven GMR deterioration risks exposing low utilization, while regulators increasingly flag KRW volatility.</li>
<li>Hynix ADR funding faces rising regulatory hurdles amid FX volatility, potentially delaying buyback funding and forcing slower dollar selling, creating a near term stock price pivot.</li>
</ul>


Local concerns are resurfacing over Hynix and Samsung’s low utilization, with further GMR cuts potentially exposing deliberate production curbs, though KRW strength remains supportive for buybacks.
Hynix and Samsung’s dollar selling may be slowing as FX driven GMR deterioration risks exposing low utilization, while regulators increasingly flag KRW volatility.
Hynix ADR funding faces rising regulatory hurdles amid FX volatility, potentially delaying buyback funding and forcing slower dollar selling, creating a near term stock price pivot.


Setup Pointing to Hynix (And Samsung) Slowing Their Dollar Selling Pretty Soon

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>There was one ADD and one DEL for the MV US Semiconductor 25 index and the MV US Semiconductor 10% capped ESG-screened index.</li>
<li>We expect MVSemi25 to trade US$4.45bn and MVSemi10% to trade US$900mm one-way for September 2026. Some small flows offset. The event is on the 18th at the close (Friday).</li>
<li>SK Hynix (SKHY US) is expected to see US$4.3bn to buy.</li>
</ul>


There was one ADD and one DEL for the MV US Semiconductor 25 index and the MV US Semiconductor 10% capped ESG-screened index.
We expect MVSemi25 to trade US$4.45bn and MVSemi10% to trade US$900mm one-way for September 2026. Some small flows offset. The event is on the 18th at the close (Friday).
SK Hynix (SKHY US) is expected to see US$4.3bn to buy.


[Quiddity Index] MV Semiconductor Indices Sep26 Rebal Results: One ADD/DEL; US$5bn+ to Trade One-Way

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899" rel="noopener">Hang Seng Index (HSI INDEX)</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)</a> and <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909" rel="noopener">Nikkei 225 (NKY INDEX)</a> all have elevated implied vols vs their peers and vs historical observations for October.</li>
<li>
<a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617" rel="noopener">NIFTY Index (NIFTY INDEX)</a> , <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a>  implied vols are on the low end of what is typically realized in October.</li>
<li>Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.</li>
</ul>



Hang Seng Index (HSI INDEX), Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY) and Nikkei 225 (NKY INDEX) all have elevated implied vols vs their peers and vs historical observations for October.

NIFTY Index (NIFTY INDEX) , S&amp;P 500 INDEX (SPX INDEX) and S&amp;P/ASX 200 (AS51 INDEX)  implied vols are on the low end of what is typically realized in October.
Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.


EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

<ul>
<li>SK Hynix fell 31% from our initiation despite a record 76% Q2 operating margin. Six structural, Korea-specific forces drove the selloff; none touch the investment thesis.</li>
<li>Every pillar confirmed: Q2 OPM 76% (fifth consecutive record), ~10 LTAs signed, Nvidia US$500bn LOI secured, and CEO Kwak commits US$64bn to new capacity — calling shortage "through 2030."</li>
<li>BULLISH maintained; TP revised to ₩2,700,000 on 10× FY2027E EPS ₩270,000. The multiple cut — from 13× — reflects AI sustainability fears and Korea's volatility premium, not earnings deterioration.</li>
</ul>


SK Hynix fell 31% from our initiation despite a record 76% Q2 operating margin. Six structural, Korea-specific forces drove the selloff; none touch the investment thesis.
Every pillar confirmed: Q2 OPM 76% (fifth consecutive record), ~10 LTAs signed, Nvidia US$500bn LOI secured, and CEO Kwak commits US$64bn to new capacity — calling shortage "through 2030."
BULLISH maintained; TP revised to ₩2,700,000 on 10× FY2027E EPS ₩270,000. The multiple cut — from 13× — reflects AI sustainability fears and Korea's volatility premium, not earnings deterioration.


SK HYNIX (000660 KS / SKHY US): TP Revised to ₩2,700,000 | BULLISH Maintained | Thesis Intact

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

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SK Hynix (000660 KS)