40 Trillion Is Just the Beginning... "SK hynix Will Unleash Another 180 Trillion, Buy It Now," Outlook Says

[Financial News] As SK hynix announced a massive 40 trillion won plan to buy back and cancel all of its treasury shares, global investment banks praised the company's overwhelming cash-generating power and shareholder return policy, saying in unison that it was time to "buy up the stock."
According to the financial investment industry on the 20th, JPMorgan Chase estimated that SK hynix could deliver at least 180 trillion won, or about $130 billion, in additional shareholder returns through 2027, on top of the 40 trillion won buyback and cancellation plan. That amount would equal about 16% of SK hynix's current market capitalization.
Jay Kwon, an analyst at JPMorgan Chase, noted that SK hynix raised its shareholder return benchmark from a cap of 50% of cumulative free cash flow to more than 50%. In effect, the ceiling on returns has disappeared. Kwon said, "The worst phase of the stock's correction has passed," and added, "As investor sentiment is expected to improve gradually, I strongly recommend buying the stock."
Nomura Securities also described SK hynix's stock as "severely undervalued" and kept its target price at 4.7 million won. Based on expected earnings for 2026 and 2027, Nomura said the stock is trading at price-to-earnings ratios of just 3.8 times and 2.8 times, respectively. It added that "profit growth driven by AI demand, reduced business risk through long-term supply contracts, and record-high shareholder returns will drive a strong re-rating of the stock."
Barclays PLC also maintained its target price of $300 for SK hynix's American Depositary Receipt (ADR) and reiterated an overweight rating. Barclays said, "SK hynix has the cash-generating power to return more than 15% of its market capitalization to shareholders while also funding large-scale capital investment to expand production capacity for AI High Bandwidth Memory (HBM)."
Earlier, SK hynix's Board of Directors met on the 19th and resolved to buy back 24.07 million common shares, worth about 40 trillion won and equivalent to roughly 3.3% of all outstanding shares, and then cancel them in full. The share repurchase will take place over the next three months, while additional dividends and specific details of the return plan are expected to be announced with third-quarter earnings.
[email protected] Moon Young-jin Reporter