Samsung Electronics Foundry: Will a positive catalyst emerge to change the stock price? / The real reason global funds flocked to SK Hynix | CEO Lee Kwon-hee

Summary

CEO Lee Kwon-hee discusses SK Hynix's ADR listing, the reasons behind global fund inflows, and Samsung Electronics' record earnings amid falling share price. He argues that Samsung's sell-off is excessive, with forward P/E at 4.8x, and sees a foundry recovery and hidden HBM4 order signals. He expects DRAM supply to remain tight through 2028, supporting both Samsung and SK Hynix as buys.

• SK Hynix ADR attracted strong institutional interest due to valuation discount versus Micron; the gap should narrow.
• ADR listing is generally positive for SK Hynix but won't cause an explosive surge as it's a secondary listing.
• Samsung Electronics' record profit was met with selling because growth rate is decelerating, but the stock looks oversold.
• Samsung's forward P/E of 4.8x is historically cheap and should re-rate to at least 6–7x, offering a buying opportunity.
• Foreign selling in Samsung is linked to funding SK Hynix ADR subscriptions; this pressure may reverse after the listing.
• Samsung's foundry business is turning profitable sooner, driven by HBM4 base die orders, suggesting higher-than-expected HBM4 demand.
• Lee argues DRAM bottleneck will persist through 2028 as HBM4 demand multiplies while capacity expansion is limited.
• Overall, Lee views the sell-off in memory stocks as an opportunity and remains constructive on both Samsung and SK Hynix.