Flash | SK Hynix Cubed – Yes, there is another layer
With all the hype currently surrounding SK Square, sharing some quick thoughts alongside the NAV discount breakdown for SK Inc. which is the ultimate holding company with a 32.2% stake in SK Square. (If you are unfamiliar with the thesis on SK Square, you can check-out our original write-up here.)
While SK Square has outperformed SK Hynix over the past year, SK Inc. has considerably underperformed (a paltry 4x).
One of the main reasons for this is that SK Square is a quasi-pure play on SK Hynix, since the shares it holds represent 98% of its NAV.
SK Inc is much more diversified: it holds a number of listed stakes, as well as other private subsidiaries and operating companies.
As a result, SK Square only represents 53% of SK Inc’s NAV. Note that this has been steadily increasing, in part due to the rise in share price but also thanks to divestments / streamlining the Board has been engaging in as part of its “value-up” initiatives.
Since the discount to …