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SK Hynix, Samsung shares rally as report of Temasek’s investment plans boosts optimism
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The Business Times
PHOTO: EPASOUTH Korean chipmakers rallied as risk appetite returns after July’s rout, with a local media report of investment plans by Singapore’s Temasek supporting sentiment.
Shares of Samsung Electronics and SK Hynix extended gains to more than 8 per cent, after Asia Business Daily reported that the Singapore investment company plans to invest directly in the two chipmakers through its internal investment team, and is mulling timing.
SK Hynix last Friday (Aug 7) said it will unveil shareholder-return details in the third quarter.
Samsung and SK Hynix are trading at 4.2 and 3.6 times forward earnings, respectively, compared with more than 21 times for the Philadelphia Semiconductor Index of global chip peers.
If confirmed, the investment would signal “strong foreign confidence in Korea’s AI/memory cycle,” said Ha SeokKeun, chief investment officer at Eugene Asset Management.