SK hynix Eyes Bigger Shareholder Returns
With SK hynix suspending its review of an initial public offering (IPO) for its sub-subsidiary Solidigm, attention is focused on the additional shareholder return cards to be announced on Oct. 28.As SK hynix emphasized the enhancement of shareholder value while halting the review of the Solidigm IPO
SK hynix is set to unveil an additional shareholder return plan on October 28, following a suspension of its review for an IPO for sub-subsidiary Solidigm. The company's focus on enhancing shareholder value has analysts anticipating a more generous return policy. Financial experts predict that SK hynix will once again surpass its earnings record in the third quarter, with a consensus estimate of 98.2257 trillion won in sales and 76.964 trillion won in operating profit.
If operating profit exceeds 70 trillion won, SK hynix would achieve its highest earnings on record for six consecutive quarters. SK hynix recently announced a plan to acquire and cancel treasury shares worth 40 trillion won, signaling its commitment to providing additional shareholder returns. Analysts believe that the withdrawal of the Solidigm IPO has further emphasized the importance of a shareholder return policy that directly benefits existing shareholders.
The market is particularly focused on the financial resources for shareholder returns, estimating a minimum of 30 trillion won based on free cash flow. Analysts suggest that SK hynix's stake sale in Japan's Kioxia, invested in 2018, could be used for a special dividend, though the company has not confirmed any specific plans.
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