Nomura Emerging Markets Fund on SK Hynix Inc.
Thesis
SK Hynix outperformed the benchmark as earnings expectations were revised upward. The fund believes the move has been driven primarily by improving earnings rather than simple valuation re-rating. Recent volatility is viewed as largely positioning and short-term sentiment driven, while the fundamental drivers of long-term growth and valuation re-rating remain intact.
“the fundamental drivers of long-term growth and valuation re-rating remain intact.”
Key risks
- Short-term positioning and sentiment-driven volatility
- Trade and geopolitical risks and related supply-chain disruptions