[Edaily Reporter kyoungeun kim ] IBK Investment & Securities released an analysis on the 20th regarding SK hynix(000660), which announced a 40 trillion won buyback of its own shares, stating, “This amount exceeds 50% of free cash flow (FCF) and is likely to serve as a catalyst for a stock price rebound.” The firm maintained its “Buy” rating and kept its target price at 4 million won.

Kim Un-ho, an analyst at IBK Investment & Securities, explained in a report released that day, “SK hynix’s policy is to allocate a certain portion of 50% of its free cash flow (FCF) toward shareholder returns,” adding, “Its existing basic shareholder return policy also emphasizes the need to secure sufficient funds for stable growth.” He continued, “With market expectations for shareholder returns rising as projected FCF for 2026 is expected to significantly exceed the target, the company decided to acquire 40 trillion won worth of treasury stock, which exceeds 50% of FCF.”
He further noted, “SK hynix estimates that it will maintain investment funds at the minimum cash level for the next two years,” and added, “We plan to disclose details regarding shareholder returns other than the share buyback when we announce our third-quarter earnings.”
Through this disclosure, SK hynix announced plans to acquire 24.07 million shares, with the total acquisition cost amounting to 40 trillion won based on the closing price of 1,662,000 won on August 18. The purchase period runs from August 20 to November 19, and the purpose of the acquisition is to enhance shareholder value through the cancellation of treasury stock. The daily purchase limit is 2,407,000 shares, which is 10% of the total shares reported for acquisition and represents approximately 42% of the average trading volume over the past month.
Analyst Kim commented, “This will serve as a catalyst for the stock price, which has fallen below its fundamentals, to rebound,” adding, “It is a level that will positively impact supply and demand.”