[Click eStock] "SK Hynix, the Key to Enhancing Corporate Value is Securing Financial Competitiveness"

On the 28th, Samsung Securities analyzed that the core to enhancing corporate value for SK Hynix is securing financial competitiveness, and in the memory cycle, cash strength is capital competitiveness. They maintained a 'Buy' investment rating and a target price of 240,000 KRW.

SK Hynix announced a new shareholder return policy and corporate value enhancement (value-up) plan to be applied from 2025 to 2027. The existing policy of allocating 50% of cumulative free cash flow (FCF) for shareholder returns will be maintained, but the fixed annual dividend per share will be raised by 25%, from 1,200 KRW to 1,500 KRW. If the targets are achieved by 2027, additional returns will be made within the scope of maintaining financial soundness.

Jongwook Lee, a researcher at Samsung Securities, explained, "SK Hynix indicated that a net cash structure takes priority over shareholder returns," adding, "This is because the transition to a net cash structure is considered as beneficial to enhancing corporate value as shareholder returns." He further noted, "Reflecting the company's goal to achieve a net cash structure by the end of 2025, about one year's worth of free cash flow between 2025 and 2027 is expected to be used for shareholder returns."

Researcher Lee continued, "Shareholder returns themselves may be perceived as a retreat. However, true corporate value enhancement lies in improving competitiveness," and analyzed, "This policy will strengthen the belief that memory companies can also generate stable cash flows."