SK Hynix continued its record-breaking streak, closing at an all-time high driven by expectations for increased shareholder returns.
On June 17, the Korea Exchange reported that SK Hynix shares finished at 2,521,000 won, up 139,000 won (5.84%) from the previous trading day. During the session, the stock reached a peak of 2,525,000 won, setting a new record.
The rise in stock price is attributed to heightened anticipation of expanded shareholder returns. Reports surfaced the previous day suggesting that SK Hynix is considering a large-scale shareholder return plan.
However, SK Hynix clarified through a public statement that while it is reviewing various options to enhance shareholder value, no specific details regarding the scale of shareholder returns have been finalized.
Despite the company's official denial, analysts remain optimistic about the potential for increased shareholder returns. Choi Kwan-soo, an analyst at SK Securities, noted, "Media reports indicated that SK Hynix is pursuing a 100 trillion won shareholder return plan. Although the company denied this report, we believe the likelihood of expanded shareholder returns is high."
Positive earnings forecasts also supported the stock's performance. Eugene Investment & Securities raised its target price for SK Hynix to 3,700,000 won.
Son In-jun, an analyst at Eugene Investment & Securities, stated, "We expect operating profit to increase by 67% year-on-year next year, driven by rising prices of high-bandwidth memory (HBM)." He added that the forecast for the average selling price (ASP) of HBM has been adjusted upward from $2.78 per gigabit to $3.24.
Analysts predict that the growth of the HBM market, fueled by increasing demand for AI semiconductors, along with expectations for shareholder returns, could lead to a reevaluation of SK Hynix's corporate value.
* This article has been translated by AI.
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