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 

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 

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 trades at a 47% discount to the value of its SK hynix stake, and that gap is set to narrow. It owns $182 billion of SK hynix against a $98 billion market cap and $1 billion of cash. Under Korea's Value-Up push, management targets a NAV discount of 30% or less, which requires large SK hynix dividends, and discount compression is now part of management pay incentives. That makes SK Square a better way to own SK hynix than SK hynix itself. x.com  x.com  x.com  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 

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 remains a buying opportunity, with its US ADR premium over Korean shares now at an all-time low of 32.66%. x.com  x.com 

SK hynix's reported growth and shareholder returns make its low earnings multiple stand out. Revenue rose 328% year over year and operating profit 632%, with shareholder returns worth about 9.5% of market cap, yet the stock trades at roughly 3.0 times estimated 2027 earnings. 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