Is Now the Time to Buy? ... "SK hynix Set for Generous KRW 40 Trillion Shareholder Return" [Click e-Stock]

On August 12, Mirae Asset Securities maintained its target price for SK hynix at 2.8 million won and its “Buy” investment rating, stating that considering the operating environment and industry outlook, the stock is currently in an excessively undervalued range.

Younggeon Kim, a researcher at Mirae Asset Securities, stated in a report released on this day, “Based on current prices, the 12-month forward price-to-book ratio (PBR) and price-to-earnings ratio (PER) multiples stand at 1.8 times and 3.5 times, respectively, which have fallen back to levels seen before the artificial intelligence (AI) boom.” He added, “Recent news regarding Solidigm’s pre-IPO investment and plans for a U.S. listing should be viewed as efforts to recover merger and acquisition (M&A) investment funds and secure resources for further investment, rather than as duplicate subsidiary listings.”

Kim explained, “If investment capital is raised through the sale of Solidigm shares, SK hynix will have investment capacity of approximately 15 billion dollars in the United States.” He continued, “Since the core technology of Solidigm SSDs depends on SK hynix’s proprietary technology, the sale of a partial stake is expected to have only a limited impact on SK hynix’s corporate value.”

A positive outlook was also expressed regarding shareholder return policies. Kim projected, “In 2026, free cash flow (FCF) will accumulate to 180 trillion won, and net cash will reach 173 trillion won.” He added, “Even after setting aside 100 trillion won as a safe asset, SK hynix will still have available funds of 70 trillion to 80 trillion won, making it fully feasible to return approximately 40 trillion won—about half of this amount—to shareholders. At the current stock price, the dividend yield could reach as high as 3.9%.”

This content was produced with the assistance of AI translation services.