[Earnings Call] SK hynix: "Our shares are undervalued... Treasury share cancellations boost value"

SK hynix said its decision to cancel treasury shares was based on the view that "our current share price is undervalued and does not fully reflect the earnings and cash flow we are generating."

An SK hynix official said during the company's third-quarter 2026 earnings call on October 28, "After setting aside cash dividends from the total amount allocated for shareholder returns, we allocated the remainder to share buybacks." The official added, "We determined that buying back and canceling our own shares is an effective way to increase value per share."

SK hynix headquarters in Icheon, Gyeonggi Province. Yonhap News Agency.

The official explained, "We plan to continue buying back shares each quarter within the annual purchase amount. The board will decide on the amount for each quarter after comprehensively considering factors such as the share price, valuation and cash flow."

Earlier that day, alongside its third-quarter earnings disclosure, SK hynix announced a shareholder return plan for fiscal 2026 that includes cash dividends of at least 30 trillion won and share buybacks and cancellations of at least 60 trillion won. The company plans to return at least 50% of its free cash flow (FCF) - the cash generated by its business after deducting spending on items such as capital expenditures - to shareholders.

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