SK Hynix to buy back $28 bln in treasury shares

S&P Global upgraded SK Hynix's long-term issuer credit rating to 'A-' from 'BBB+', citing AI-driven strength and robust profitability. The agency expects strong performance until 2028, driven by high memory chip prices and increased demand from hyperscalers. SK Hynix plans to increase capital expenditure significantly to expand production capacity.

SK hynix (000660) stock rose 3.6% in pre-market trading after announcing a 40 trillion Korean won ($28.3 billion) share buyback and cancellation program, the largest in South Korean history. The buyback, approved by the board, will run for three months, boosting earnings per share. The company also pledged to return over 50% of free cash flow from 2025 to 2027 to shareholders, up from 50%. This follows a 5.6% decline the prior day due to geopolitical concerns.

SK Hynix plans to buy back and cancel $28.6B in shares, allocating over 50% of free cash flow from 2025-2027 to shareholder returns. The move follows investor pressure and record profits, with the company citing undervaluation. Additional measures, including special dividends, are under consideration.

SK hynix announced a $28.6 billion share buyback plan, repurchasing 24.07 million shares by Nov. 19. The company aims to cancel all repurchased shares, citing undervaluation. SK hynix also raised its shareholder return policy to 50% or more of cumulative free cash flow from 2025 to 2027, with potential returns exceeding 200 trillion won. The move follows recent sell-offs and lack of shareholder return measures in its July earnings announcement.

SK hynix announced a 40 trillion won ($28 billion) share buyback, the largest in South Korea, starting Thursday. The company also raised its shareholder return target for 2025-2027 to over 50% of cumulative free cash flow, citing strong cash generation from AI-driven memory demand. The buyback, about 3.3% of shares, follows calls for better returns and is expected to support per-share value.

SK hynix's board approved a 40 trillion won share repurchase and cancellation plan, aiming to return over 50% of its 2025-2027 free cash flow. The company believes its stock is undervalued and has strong cash generation. The repurchase, the largest in South Korea, will run for three months starting August 20, canceling about 3.3% of its shares.