With Solidigm’s listing review halted, focus shifts to ‘shareholders’ wallets’ ... All eyes on SK Hynix earnings

[Financial News] SK Hynix’s suspension of its review of a Solidigm initial public offering (IPO) could lead to stronger shareholder returns, analysts say. With policies that directly benefit existing shareholders gaining importance over listing a subsidiary, the company may present specific measures at its earnings briefing on the 28th.
Meritz Securities said on the 23rd that it views SK Hynix’s decision to suspend its review of a Solidigm listing as a clear signal that enhancing shareholder value is the company’s top priority, ahead of the growth strategy it has envisioned.
Researcher Kim Sun-woo noted that SK Hynix had said there was no change in Solidigm’s growth prospects or investment needs, but said the decision also showed a strong commitment to shareholder returns. “We expect more effective and concrete measures to enhance shareholder value to be presented at the upcoming earnings briefing,” he said.
Solidigm is a subsidiary launched by SK Hynix after it acquired Intel’s NAND business. It is expanding its business around enterprise solid-state drives (eSSDs) for AI data centers. Solidigm’s IPO was considered as a way to raise funds for investment in new factories to establish a production base in the United States and to attract equity investment from big tech companies. The possibility that it could lead to a reevaluation of the parent company SK Hynix’s corporate value was also cited as a reason for considering the IPO.
Kim said that shareholder return measures following the suspension of the listing review could serve as a catalyst for a share price rebound. He assessed that, based on the previous day’s closing price, SK Hynix’s forecast price-to-book ratio (PBR) for 2027 had fallen to 1.10 times, a level close to its historical low.
From an earnings perspective, he highlighted profit growth driven by higher selling prices for mobile products in the first quarter of 2027 and pricing under long-term supply agreements (LTAs). Kim expected shareholder return measures to be strengthened further, backed by this earnings outlook and strong cash generation.
The event drawing the market’s attention is the third-quarter earnings briefing scheduled for the 28th. He said, “We expect it is highly likely that stronger shareholder return measures, exceeding current expectations, will be presented at this briefing,” and analyzed, “Solidigm’s IPO withdrawal may have further underscored the importance of return policies that directly benefit existing shareholders.”
He added, “If a valuation close to historical lows coincides with stronger shareholder return measures, we expect it to drive a meaningful rebound in the company’s share price.”
Meanwhile, SK Hynix’s previously announced 40 trillion won share buyback was completed on the 21st.
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