JPMorgan Chase: SK Hynix shareholder return cap is "lifted" or another US$130 billion is spent to repay shareholders

On August 20, JPMorgan analyst Jay Kwon predicted that by 2027, SK Hynix (SKHY.O) may use at least 180 trillion won (approximately US$130 billion) for additional shareholder returns, equivalent to 16% of the current total market value. This amount does not include the announced 40 trillion won repurchase and cancellation plan. Kwon believes this will help provide support for stock prices after the recent sell-off. JPMorgan not only emphasized the size of the buyback, but also pointed out that SK Hynix removed practical limits on shareholder returns. Although SK Hynix previously planned to use up to 50% of its cumulative free cash flow from 2025-2027 for shareholder returns, it has now expanded it to "more than 50%." It should be pointed out that the 180 trillion won is a forecast based on adjusted shareholder return standards and future cash creation capabilities, not the amount officially announced by SK Hynix. "We judge that the worst is over," Kwon said, adding,"We expect equity investment sentiment to improve in the medium term and advise investors to increase their holdings."