On the verge of breaking issue price? SK Hynix U.S. ADR drops over 10% in pre-market trading

Glonghui, July 13 – SK Hynix ADR (SKHY.US), which was just listed last Friday, plunged over 10% in pre-market trading today, quoted at $150.87. The IPO price was set at $149. According to financial investment AI assistant Kouzi APP, the main reason for the sharp decline in ADR is the significant 15.37% closing drop of SK Hynix in the Korean market. Korean local brokerage KIS predicts that SK Hynix's second-quarter operating profit will reach 60.4 trillion KRW, up 61% quarter-on-quarter and soaring 556% year-on-year, but still 8% lower than the market consensus estimate of 65 trillion KRW. The lower-than-expected performance is mainly attributed to SK Hynix’s HBM income accounting for a higher proportion compared to its peers, resulting in its average selling price rising less than the market average. KIS also expects SK Hynix's second-quarter operating profit margin to be 65%, down 8 percentage points quarter-on-quarter.