Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, I provide an updated SoTP valuation analysis of SK Inc (034730 KS) which I proposed as my 2026 High Conviction Idea on 4 December 2025.</li>
<li><em><strong>My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from current levels.  </strong></em></li>
<li>The biggest change in the valuation of SK Inc is its 32.1% stake in SK Square (402340 KS) which is now worth 80.4 trillion won.</li>
</ul>


In this insight, I provide an updated SoTP valuation analysis of SK Inc (034730 KS) which I proposed as my 2026 High Conviction Idea on 4 December 2025.
My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from current levels.  
The biggest change in the valuation of SK Inc is its 32.1% stake in SK Square (402340 KS) which is now worth 80.4 trillion won.


An Updated SoTP Valuation Analysis of SK Inc: 2026 High Conviction Idea

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.

Equity Capital Markets

<ul>
<li>Street is converging on about 15 percent total headroom, combining 2.5 percent issuance and 12.5 percent conversion, balancing passive inflow demand and Korean regulatory concerns over local market liquidity.</li>
<li>DR conversion is effectively locked at 1 to 1, with passive flows expected to clear supply, supporting early arbitrage while preserving future stock split optionality.</li>
<li>Focus on three way dynamics between local upside, ADR subscription demand, and post listing arb, with positioning driven by passive inflow versus headroom supply demand mismatch.</li>
</ul>


Street is converging on about 15 percent total headroom, combining 2.5 percent issuance and 12.5 percent conversion, balancing passive inflow demand and Korean regulatory concerns over local market liquidity.
DR conversion is effectively locked at 1 to 1, with passive flows expected to clear supply, supporting early arbitrage while preserving future stock split optionality.
Focus on three way dynamics between local upside, ADR subscription demand, and post listing arb, with positioning driven by passive inflow versus headroom supply demand mismatch.


Hynix ADR: Mid July Listing, 15% Headroom, and 1:1 Conversion

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Jun 12th. The aggregated holding was USD1,796.8bn.</li>
<li>We estimate that foreign flows to be outflows of USD7,074mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, SKSQUARE, Samsung Elec (PREF), Hyundai Motor.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Jun 12th. The aggregated holding was USD1,796.8bn.
We estimate that foreign flows to be outflows of USD7,074mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, SKSQUARE, Samsung Elec (PREF), Hyundai Motor.


KRX Foreign Holding Weekly (Jun 12th): Samsung Electronics, SK Hynix, SKSQUARE, Samsung Elec (PREF)

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Jun 5th. The aggregated holding was USD1,580.4bn.</li>
<li>We estimate that foreign flows to be outflows of USD9,883mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, LG Electronics, NAVER, Samsung Elec (PREF).</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Jun 5th. The aggregated holding was USD1,580.4bn.
We estimate that foreign flows to be outflows of USD9,883mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Samsung Electronics, SK Hynix, LG Electronics, NAVER, Samsung Elec (PREF).


KRX Foreign Holding Weekly (Jun 5th): Samsung Electronics, SK Hynix, LG Electronics, NAVER

Event-Driven

<ul>
<li>Hynix futures open interest trends lower since June 2 with LPs still rolling exposure into next month, while aggressive daily rolls are pressuring Hynix spot and deepening front month backwardation.</li>
<li>Desks are focused on non rolled size into next Thursday expiry, with potential forced unwind from long cash short futures setups driving spot selling and higher volatility risk.</li>
<li>Hynix setup is spot negative into expiry in both roll and non roll cases, a key factor for structuring trades into next Thursday outright or relative value versus Square.</li>
</ul>


Hynix futures open interest trends lower since June 2 with LPs still rolling exposure into next month, while aggressive daily rolls are pressuring Hynix spot and deepening front month backwardation.
Desks are focused on non rolled size into next Thursday expiry, with potential forced unwind from long cash short futures setups driving spot selling and higher volatility risk.
Hynix setup is spot negative into expiry in both roll and non roll cases, a key factor for structuring trades into next Thursday outright or relative value versus Square.


Hynix Expiry Setup Spot Negative Both Roll and Non Roll, Key for Trades Vs Square

South Korea

SK Square Co., Ltd. operates as an investment company. The Company invests in semiconductors, information and communications technologies, and other industries. SK Square conducts businesses in South Korea.

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SK Square (402340 KS)

An Updated SoTP Valuation Analysis of SK Inc: 2026 High Conviction Idea

My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from...

Douglas Kim

Hynix ADR: Mid July Listing, 15% Headroom, and 1:1 Conversion

This post covers the SK Hynix ADR set up, including mid July listing, 15 percent headroom, and a 1 to 1 conversion ratio.

Sanghyun Park

KRX Foreign Holding Weekly (Jun 12th): Samsung Electronics, SK Hynix, SKSQUARE, Samsung Elec (PREF)

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, SK Hynix, SKSQUARE, Samsung...

Ke Yan, CFA, FRM

KRX Foreign Holding Weekly (Jun 5th): Samsung Electronics, SK Hynix, LG Electronics, NAVER

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, SK Hynix, LG Electronics,...

Ke Yan, CFA, FRM

Hynix Expiry Setup Spot Negative Both Roll and Non Roll, Key for Trades Vs Square

Hynix setup is spot negative into expiry in both roll and non roll cases, a key factor for structuring trades into next Thursday outright or...

Sanghyun Park

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