SK Hynix to Propose $71 Billion Shareholder Return Plan

Huo Xing Finance reports that on August 8, according to the Korea Economic Daily, SK Hynix is preparing a shareholder return program totaling approximately KRW 100 trillion (about $71 billion), including share buybacks and cash dividends. The share buyback component is expected to reach KRW 40 trillion (about $28.4 billion), representing slightly more than 2% of the company’s total outstanding shares—a proportion similar to the 2.5% of shares issued for its U.S. ADR listing. This figure marks a nearly sevenfold increase compared to last year’s combined shareholder returns of approximately KRW 14.3 trillion from cash dividends (KRW 2.1 trillion) and share cancellations (KRW 12.2 trillion). SK Hynix’s dominant position in the HBM market, a core component of AI infrastructure, underpins its confidence in launching such an aggressive return plan. The company expects revenues of approximately KRW 34.56 trillion and operating profits of about KRW 26.64 trillion this year, representing year-over-year growth of roughly 256% and 464%, respectively. During its July earnings call, SK Hynix indicated that HBM4 shipments will significantly ramp up in the second half of the year, alongside increased volumes of advanced-node general-purpose DRAM, resulting in total shipments for the second half exceeding those of the first half. Previously, HSBC noted that SK Hynix’s stock price implied a盈利 cycle that had sharply shortened from about six years to 2.7 years, suggesting the valuation was “overly pessimistic.” The accelerated implementation of this shareholder return program may now serve as a direct catalyst for valuation recovery.