JPMorgan: SK Hynix May Add $130 Billion in Shareholder Returns

JPMorgan has stated that SK Hynix may add at least $130 billion in shareholder returns before 2027. The company previously announced a stock buyback plan worth 40 trillion won (approximately $29 billion) and plans to increase the proportion of cumulative free cash flow allocated for shareholder returns from "no more than 50%" to "at least 50%" from 2025 to 2027. JPMorgan analyst Jay Kwon pointed out that the key to this buyback plan is SK Hynix's commitment to raising the upper limit of shareholder returns, which is expected to bring in "at least 180 trillion won in additional shareholder returns" by 2027, equivalent to 16% of the company's current total market value. Kwon believes that the worst period has passed, and expects stock price sentiment to gradually improve, advising investors to increase their holdings of the stock. SK Hynix's stock price rose by as much as 13% on the Korea Exchange after the company announced it would buy back and cancel up to 24 million shares, marking the largest stock cancellation plan in the history of South Korean listed companies. The rise of SK Hynix also boosted the Korea Composite Stock Price Index (KOSPI), with competitor Samsung Electronics' stock price rising by as much as 10%. The market believes that further increases in shareholder return expectations may drive a rebound in South Korean memory chip stocks, despite recent corrections in the memory sector due to concerns over the sustainability of AI investments and competitive pressure from China. Currently, SK Hynix's stock price is still over 40% lower than the historical high reached in June.

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