Odaily Planet Daily report: With the "quiet period" following the listing of SK Hynix's American Depositary Receipts (ADR) now over, the market is turning its attention to whether the company will introduce a shareholder return policy, including a stock split. The possibility of a split amid its high share price has become a focal point of discussion. Recently, views circulating in the Korean market suggest that SK Hynix may follow Samsung Electronics' previous example and implement a stock split after continued price appreciation to lower the per-share price and increase participation by individual investors. However, these claims have not yet been officially confirmed by the company.
On the 5th, Park Seok-hyun, Deputy Head of the Wealth Management Products Division at Woori Bank, said on YTN Radio that “there is currently no clear basis for a stock split at SK Hynix, but it cannot be ruled out entirely.” Although SK Hynix’s current par value is low and there is debate over whether further splitting is feasible, the possibility of a stock split cannot be entirely dismissed as the share price continues to rise.
He stated that after SK Hynix ADRs were listed on the U.S. market in July, newly listed companies typically experience a “quiet period” of about 25 days during which few major policy changes are announced, and this period ended on August 4.
The end of the quiet period means SK Hynix has entered a phase where it may announce important financial policies; recent market discussions about stock splits and increased dividends may be related to this timing,” said Park Seok-hyun.
Market participants believe that SK Hynix's current stock price is at a high level within the Korean stock market. As of the close on the 5th, the company's stock price stood at 1.668 million KRW, reflecting a high per-share value. If a stock split is implemented in the future, it could lower the investment threshold and increase trading activity among retail and overseas investors.
In addition, Park Seok-hyun stated that SK Hynix has significantly improved its profitability in recent years and may strengthen its shareholder return policy in the future, including increasing dividend levels. If such policies are implemented, they could further increase interest from U.S. market investors in its ADRs.
However, SK Hynix has not yet issued an official announcement regarding a stock split or changes to its dividend policy; market speculation remains pending confirmation from the company’s board and official sources. (Daum)