"JP Morgan Highlights and Analyzes Additional Shareholder Returns, Urging 'Buy More SK hynix Even Now'"
"At Least 180 Trillion Won Possible by Next Year"
JPMorgan Chase has analyzed that SK hynix could carry out additional shareholder returns totaling at least approximately 180 trillion won (130 billion dollars) by next year.
According to Bloomberg News on the 20th (local time), Jei Kwon, an analyst at JPMorgan, stated in a report that the key point of the recently announced 29 billion dollar (about 40 trillion won) share buyback is SK hynix's plan to raise the cap on shareholder returns and expand the total amount to be returned to shareholders.
SK hynix had previously announced that it would use "up to 50%" of cumulative free cash flow (FCF) from 2025 to 2027 for shareholder returns. However, the company now intends to increase this figure to above 50%.
Based on this, Analyst Kwon estimated that SK hynix is likely to pursue at least an additional 130 billion dollars in shareholder returns by 2027, on top of plans already unveiled. This amount is equivalent to 16% of the current market capitalization and is expected to help support the stock price, which has recently experienced a sharp decline.
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He emphasized, "We believe the worst phase has passed," adding, "As investor sentiment toward the stock price is expected to gradually improve mid-term, we recommend investors accumulate shares."
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