"SK Square to Strengthen Shareholder Returns... Target Price Raised to 1.5 Million Won"[Click e-Stock]

On October 7, DB Financial Investment raised its target price for SK Square from 1,450,000 won to 1,500,000 won, reflecting the increased value of SK hynix and its proactive shareholder return policy. The firm maintained its "Buy" investment rating.

In a report released on this day, DB Financial Investment stated, "We estimate SK Square's net asset value (NAV), reflecting the price fluctuation of SK hynix, to be a total of 278 trillion won, with the value of its SK hynix holdings at 274 trillion won. Although the company’s valuation is highly volatile in line with SK hynix’s stock movements, its shareholder return policy provides a stabilizing factor and serves as a key investment point."

SK Square announced a shareholder return plan worth a total of 310 billion won for this year. Of this, 204.3 billion won will be distributed as dividends, while the company is also expected to implement a share buyback and cancellation program worth 110 billion won. As it converts 5.9 trillion won of capital surplus into retained earnings, its capacity for shareholder returns is expected to be even stronger from next year onward.

In particular, SK Square is expected to directly benefit from SK hynix’s strengthened shareholder return policy. SK hynix has raised its shareholder return standard to over 50% of cumulative free cash flow (FCF) for the three years from 2025 to 2027, and is currently engaging in share buybacks and cancellations.

DB Financial Investment commented, "SK hynix’s annual dividend per share (DPS) for this year is 12,000 won, and as a result, SK Square’s dividend income for next year is anticipated to reach approximately 1.7 trillion won. Since SK Square returns 50–60% of its dividend income to shareholders, about 1 trillion won is expected to be allocated for shareholder returns."

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