JPM responds to investor question over the recent collapse of SK Hynix

SKH’s share price fell 15% this week (vs. Kospi -5% and SEC -9%) on multiple market headlines associated with: (1) an HBM content cut and pricing uncertainty risk; (2) unclear shareholder return timing while potentially seeking a subsidiary IPO; and (3) a sizable infrastructure capex plan disclosure.

We believe HBM content normalization is a necessary step to handle the excessive chip shortage and view the 50% discount headlines as inaccurate. The headline capex plan for infrastructure investment is indeed large, but it is part of the SKH team’s plan to first secure the fab space and prepare the new fab space after hitting 1mn-wafer capacity by 2030E...
Next key company-specific catalysts include: (1) a shareholder return program update (by Sep-end); (2) an HBM contract price update (by Sep-end); and (3) a US subsidiary listing plan update (next one month).

JPM responds to investor question over the recent collapse of SK Hynix

SKH’s share price fell 15% this week (vs. Kospi -5% and SEC -9%) on multiple market headlines associated with: (1) an HBM content cut and pricing uncertainty risk; (2) unclear shareholder return timing while potentially seeking a subsidiary IPO; and (3) a sizable infrastructure capex plan disclosure.

We believe HBM content normalization is a necessary step to handle the excessive chip shortage and view the 50% discount headlines as inaccurate. The headline capex plan for infrastructure investment is indeed large, but it is part of the SKH team’s plan to first secure the fab space and prepare the new fab space after hitting 1mn-wafer capacity by 2030E...
Next key company-specific catalysts include: (1) a shareholder return program update (by Sep-end); (2) an HBM contract price update (by Sep-end); and (3) a US subsidiary listing plan update (next one month).

Source:https://twitter.com/zerohedge/status/2086827101454278936