SK Inc. and SK Square offer a way to own underlying businesses at a holding-company discount, assuming management acts in minority shareholders' interests. SK Square's 20% stake in SK hynix has benefited from portfolio cleanup, buybacks and executive-pay alignment; its shares outperformed SK hynix over the past three years. SK Inc. trades at a massive discount to its underlying SK hynix stake. x.com  x.com 

SK Square could outperform SK hynix as Hynix buybacks raise its 20% ownership to 25-30% over the next few years and cash distributions let SK Square repurchase shares or buy more Hynix, potentially shrinking its 45% NAV discount. It remains the favorite memory exposure; if SK hynix doubles in 12-18 months, SK Square could gain 30-40% more than Hynix. x.com 

Owning SK Hynix directly beats buying SK Square for its discount. Holding companies trade below NAV for a reason: there is no good way to force an arbitrage on their assets, just as Grayscale vehicles traded below the value of their crypto. SK Square's roughly 20% Hynix stake may look worth more than the company, but that discount can persist. x.com 

SK Square is a discounted way to own SK hynix, one of the world's most important memory companies. Its NAV is about ₩1.8 million per share, almost all of it the SK hynix stake, while the stock trades near ₩1.0 million, a 40-45% discount. Korean holding-company discounts never fully vanish, but management now targets a discount below 30% by 2028 and is returning capital via buybacks, cancellations or dividends. The case only needs SK hynix to keep compounding and the gap to narrow slightly. x.com 

SK Square is the ultimate way to play the HBM boom without paying full price for SK hynix. A post the author replies to notes it trades at about a 38% discount to its SK hynix stake, with management targeting below 30% by 2028 through share cancellations and buybacks. If management sticks to those buybacks and Value Up pressure keeps building, that discount is close to free money, though capturing it takes real research. x.com  x.com 

SK Square's NAV discount is overstated because the company would owe tax on its holdings. For US investors, the tax reporting implications also make it not worth owning. x.com  x.com 

SK hynix's expected widening supply-demand gap makes the 2028 downcycle implied by its valuation seem impossible. SK hynix management says its shares are undervalued relative to earnings and cash flow, and that assessment rings true. x.com  x.com 

A new sell-side forecast for SK hynix's Q4 operating profit strengthens its low-valuation case. The report looks for a 40% sequential rise to $88B, up 560% year over year. SK hynix might earn over $350B in operating profit in 2027 against an $800B market cap, or about 2x EV/operating profit after accounting for cash and its Kioxia stake. It could afford to buy back half its shares over three years. x.com 

SK hynix's record earnings and five-year volume and spec agreements make its valuation look too low. Quarterly revenue reached KRW104.62T, up 32%, and operating profit hit $63B against a $785B market cap, below AMD's and less than half Tesla's. Its planned KRW100T (~$75B) shareholder return would be one of the world's largest, signaling conviction and unusual demand visibility. AI-inference 3D DRAM is coming by 2030; a reasonable valuation is all that is sought. x.com  x.com  x.com  x.com  x.com  … Show more

SK Square is a cheaper way to own SK Hynix, with modelling pointing to roughly 2-3x upside. Per @daniel_koss, it offers access to SK Hynix, among the five most important AI infrastructure companies, at under 3x forward P/E, and could be a 5-10x in one to two years. A post the author replies to frames 5-10x as the bull case if the holding discount narrows to 30% and Hynix's P/E reaches 15 on high profits. x.com  x.com