Samsung Electronics and SK Hynix Increase Market Cap by 20 Trillion Won This Year Alone

[Asia Economy Reporter Song Hwajeong] Samsung Electronics and SK Hynix have been driving strong gains since the beginning of the year. Both companies have consecutively set new all-time highs, with their combined market capitalization increasing by more than 20 trillion won so far this year.

As of 9:15 a.m. on the 10th, Samsung Electronics rose 1.71% (1,000 won) from the previous day to 59,600 won. Early in the session, it climbed to 59,700 won, setting a new all-time high in just one day. The previous day, Samsung Electronics closed at 58,600 won, up 3.17% from the prior trading day, marking the highest level in about 45 years since its listing on June 11, 1975, based on adjusted stock prices. The previous record was 57,220 won on November 1, 2017.

SK Hynix also reached an intraday high of 99,600 won on the same day, setting a new all-time high in just two days.

Based on the previous day's closing prices, Samsung Electronics has risen 5.02% this year, while SK Hynix has increased by 5.21%. Compared to the 52-week lows both companies recorded on January 4 last year, Samsung Electronics has surged 59.2%, and SK Hynix has jumped 74.6%.

As stock prices rose rapidly, market capitalization also expanded. The combined market cap of the two companies has increased by more than 20 trillion won this year alone. As of the previous day's closing, their combined market capitalization stood at 421.9015 trillion won, up 20.2827 trillion won from the end of last year (401.6188 trillion won). Their combined market cap accounts for 29.83% of the entire KOSPI, approaching 30%. According to Bloomberg, Samsung Electronics ranked 21st among global companies by market capitalization as of the previous day, nearing entry into the top 20.

The improvement in the semiconductor industry outlook this year and the resulting expectations for earnings recovery are believed to have driven the stock prices higher. On the 8th, Samsung Electronics released solid preliminary results for the fourth quarter of last year, and SK Hynix is also expected to exceed consensus estimates for its fourth-quarter earnings. Samsung Electronics posted consolidated sales of 59 trillion won and operating profit of 7.1 trillion won in Q4 last year. These figures represent decreases of 0.46% and 34.26%, respectively, compared to the same period the previous year, but the operating profit exceeded market expectations of 6.5 trillion won. Kim Yangjae, a researcher at KTB Investment & Securities, said, "SK Hynix's Q4 earnings are expected to slightly surpass consensus, with sales down 31.6% year-on-year to 6.8 trillion won and operating profit down 89% to 500 billion won."

The full-scale earnings recovery is expected to begin in the first quarter of this year. Lee Jaeyoon, a researcher at Yuanta Securities, said, "In Q1, combined memory semiconductor sales and operating profit for Samsung Electronics and SK Hynix are expected to reach 18 trillion won and 3.9 trillion won, respectively, signaling a full-scale earnings improvement." He explained, "Major customers, who focused on price reductions and inventory depletion throughout last year due to external economic uncertainties, are now actively resuming DRAM purchases, which is expected to lead to a turnaround in DRAM prices." Lee added, "For the full year, combined DRAM sales and operating profit for Samsung Electronics and SK Hynix are projected to be 88 trillion won and 28 trillion won, respectively, representing increases of 16% and 92% year-on-year, demonstrating strong earnings momentum."

This content was produced with the assistance of AI translation services.