#SKHynix40TBuyback
About SKHynix40TBuyback
SK Hynix plans to buy back 24.07M common shares between Aug 20 and Nov 19, roughly 3.3% of shares outstanding, and cancel all of them. Based on the reference price in the filing, estimated cost is about KRW40T, with actual spend depending on execution prices. The company already committed 50% of cumulative 2025-2027 free cash flow to shareholder returns, with further dividend plans due at Q3 results. Can AI-memory cash flow fund HBM, advanced packaging and NAND capex while supporting payouts?
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US-Aktienberichte · SK Hynix (17. bis 19. August)
SK Hynix: Plant, eigene Aktien im Wert von 40 Billionen KRW zurückzukaufen Am 19. August genehmigte der Vorstand einen Aktienrückkauf- und Löschungsplan im Umfang von 40 Billionen KRW. Basierend auf dem Schlusskurs von 1.662.000 KRW pro Aktie am Tag vor der Beschlussfassung könnten etwa 24,07 Millionen Stammaktien zurückgekauft werden, was etwa 3,3 % der ausgegebenen Aktien des Unternehmens entspricht. Der Rückkaufplan beginnt am 20. August und soll voraussichtlich etwa drei Monate dauern. Die zurückgekauften Aktien sollen nach Abschluss der Akquisition vollständig gelöscht werden. „Rückkauf“ bedeutet, dass das Unternehmen Geld ausgibt, um eigene Aktien zurückzukaufen, „Löschung“ bedeutet, dass diese Aktien aus dem Umlauf genommen werden. Wenn beides zusammen erfolgt, bedeutet das, dass die Gesamtzahl der Aktien des Unternehmens schrumpft. Vorausgesetzt, der Gewinn des Unternehmens bleibt unverändert, würde der Gewinn pro Aktie mathematisch steigen; ob der Aktienkurs jedoch steigt, hängt weiterhin von zukünftigen Gewinnen, dem Rückkaufpreis und den Markterwartungen ab und kann nicht direkt aus dem Löschungsanteil abgeleitet werden. SK Hynix hat außerdem das Ziel für die kumulierte Ausschüttung an Aktionäre aus dem freien Cashflow von 2025 bis 2027 von ursprünglich „nicht mehr als 50 %“ auf „mehr als 50 %“ erhöht. Das Unternehmen plant, sowohl Rückkäufe und Löschungen als auch Bardividenden einzusetzen; sowohl feste Dividenden als auch Sonderdividenden werden ebenfalls in Betracht gezogen. Kurz gesagt: SK Hynix plant diese Woche, einen größeren Teil des mit AI-Speicher verdienten Geldes an die Aktionäre zurückzugeben. [18. August] Warum Speicher immer wichtiger wird Am Tag vor der Rückkaufankündigung veröffentlichte SK Hynix auf seiner offiziellen Website den ersten Artikel der „AI-Ökosystem“-Reihe. Der Artikel argumentiert, dass sich die AI-Berechnung von der bloßen Erweiterung des Trainingsumfangs allmählich hin zu Inferenz, intelligenten Agenten und autonomem Handeln entwickelt. In diesem Prozess ist entscheidend, wo die Daten gespeichert werden und wie weit sie bewegt werden müssen
SK Hynix’s planned repurchase of 24.07M common shares, roughly 3.3% outstanding, matters less as a one-off price signal than as a test of capital allocation discipline. All repurchased shares are set to be cancelled, while the estimated KRW40T cost can still vary with execution prices between Aug 20 and Nov 19.
The measured judgment: committing 50% of cumulative 2025–2027 free cash flow to shareholder returns raises the bar for operating execution. If AI-memory cash flow remains robust, buybacks and investment in HBM, advanced packaging and NAND can coexist; if it weakens, flexibility becomes more valuable. Q3 dividend plans should clarify that balance. Not advice, just analysis.
#SKHynix40TBuyback
$000660 buyback news may be a decent catalyst for the $SKHY 40% prem (middle chart in purple) to start falling.
Buyback will only be on the korean line (duh)
SK Hynix’s reported KRW 40 trillion ($28.6 billion) share buyback could be one of the biggest catalysts for the stock over the next year.
The buyback would cover roughly 3.3% of total shares outstanding.
Memory names like $MU $SNDK $STX have already reversed earlier pre-market losses and moved higher.
Overall, we expect strong performance from $SKHY, potentially mirroring $SNDK’s rally following its Investor Day.
In terms of the buyback, we believe the buyback itself is not entirely a surprise for investors who have been following the company closely.
- Back in June, Korean media reported that SK Hynix was considering around KRW 100 trillion in shareholder returns this year, including a KRW 40 trillion buyback.
- The company never confirmed it at the time, so some of this was already priced into expectations.
- The bigger surprise is the change in its shareholder return framework.
- SK Hynix previously aimed to return up to around 50% of cumulative free cash flow over three years.
- Under the newly reported policy, it would return at least 50% of cumulative FCF to shareholders.
The buyback would also more than offset dilution from its recent ADR issuance.
SK Hynix issued around 17.79 million new shares in July for its Nasdaq ADR listing, equivalent to roughly 2.5% of its previous share count.
The new plan calls for the repurchase and cancellation of about 24.07 million shares, meaning SK Hynix would still retire a net 6.28 million shares even after fully offsetting the ADR dilution.
This would also mark its second major share cancellation this year.
Jukan
SK hynix to Accelerate KRW 40 Trillion Share Buyback and Cancellation; Raises Shareholder Return Target to “At Least 50% of FCF”
▶️ Share Buyback and Cancellation
- On August 19, the board approved the repurchase and cancellation of KRW 40 trillion worth of treasury shares.
- Based on the previous day’s closing price of KRW 1,662,000 per share, the company plans to acquire approximately 24.07 million shares, equivalent to around 3.3% of total shares outstanding.
- The repurchase will begin on August 20 and continue for approximately three months, after which all acquired shares will be cancelled.
- This will be the largest share cancellation ever undertaken by a Korean-listed company.
▶️ Rationale Behind the Decision
- The company believes its current share price does not adequately reflect its intrinsic value, considering its business competitiveness, cash-generating capacity, and medium- to long-term growth prospects.
- SK hynix’s net cash position reached approximately KRW 69 trillion as of the end of the second quarter, reflecting a significant improvement in cash generation.
▶️ Accelerated Implementation of Shareholder Return Policy
- The company is accelerating the implementation of its existing policy to return up to 50% of cumulative free cash flow generated between 2025 and 2027.
It also plans to raise its shareholder return target from “up to 50% of cumulative FCF” to “at least 50%.”
- With progress toward its financial soundness targets remaining on track, the company intends to continue shareholder returns while maintaining a stable financial structure.
▶️ Next Steps
- SK hynix plans to combine share buybacks and cancellations with cash dividends, while also considering measures to expand dividends, including higher fixed dividends and special dividends.
- The specific size and structure of additional shareholder returns will be determined by the board and announced alongside the company’s third-quarter earnings results.
$SKHY
[Pharaoh's Market Watch]
Brothers, Hynix's recent moves are like dancing and slapping faces in the market—anyone who still says "storage cycle has peaked" should first look at this $28.6 billion buyback and cancellation gift package. The largest move in South Korean history, directly stuffing money into shareholders' hands until they can't hold anymore.
How much money? Q2 profits surged 557%, operating margin at 76%, with 69 trillion KRW in cash on hand.
$SKHY $BTC $DOGE
#SKHynix40TBuyback
On July 29, $SK Hynix plummeted after the earnings report;
On August 5, a signal to enhance shareholder returns was released;
On August 7, a quarterly dividend of 375 KRW was announced;
On August 8, the market rumored a 40 trillion KRW buyback;
Today, August 19, it was officially announced to repurchase and cancel about 40.43 trillion KRW worth of shares.
The timing is quite good; every time Hynix's stock price drops sharply, good news follows 🥹
SK Hynix announced overnight their plans to buyback $29B of stock over the next few months.
SK Hynix market cap is approx $850 billion
I think SK Hynix does announcements like this every 3-6 months because each buyback will need board approval.
Considering their current cash balance and the FCF they're going to generate over the next few years... doing a 3.3% buyback is tiny compared to what they can and will do.
Over the next 12 quarters, I believe SK Hynix will generate at least $600B of FCF (base case) and it could be closer to $750B (bull case).
SK Hynix has said they'll return at least 50% of FCF to shareholders.
So, base case is that SK Hynix returns at least $300 billion to shareholders over the next few years... but it could easily be $400-500B which is half their current market cap.
I think SK Hynix will grow revenues by at least 25-30% from 2027 through 2030... even with some margin compression... if they're buying back half of the outstanding shares then the EPS growth rate will be higher than 25-30% and could be 40% which means the stock trading today at 4x NTM EPS is just hilarious.
NFA.
DYOR.
Jonah Lupton
Every couple of months I post our top positions at @FirstWaveFund and since we sent our May investor letter a few days ago I don’t mind sharing those positions... here are the top 12 in alphabetical order:
AAOI, ALAB, APP, CRDO, HIMS, HROW, IREN, MELI, MU, NBIS, RDDT, TMDX
All estimates are my own. Every company mentioned in this post has risks so please do your own research and form your own opinions, thesis and conviction. Please don't waste your time asking me where I'd be buying or trimming... because I won't answer.
I spend alot of time building our models and thinking through all the possible variables and catalysts that will impact the reported financials but in reality trying to predict revenues, margins, dilution and earnings in CY2028 or FY2029 is not easy.
$AAOI
CY2025 revenues = $455M
CY2028 revenues = $10.70B
3 year revenue CAGR = 186%
CY2025 EPS = -$0.26
CY2026 EPS = $1.04
CY2028 EPS = $10.40
2 year EPS CAGR from CY2026 through CY2028 = 216%
Currently trading at 15.6x CY2028 EPS (not including cash/debt)
$ALAB
CY2025 revenues = $852M
CY2028 revenues = $3.88B
3 year revenue CAGR = 66%
CY2025 EPS = 1.84
CY2028 EPS = $8.55
3 year EPS CAGR = 67%
Currently trading at 48.7 CY2028 EPS (not including cash/debt)
$APP
CY2025 revenues = $5.48B
CY2028 revenues = $16.67B
3 year revenue CAGR = 45%
CY2025 EPS = $10.64
CY2028 EPS = $37.06
3 year EPS CAGR = 52%
Currently trading at 12.6x CY2028 EPS (not including cash/debt)
$CRDO
FY2025 revenues = $436M
FY2028 revenues = $4.11B
3 year revenue CAGR = 111%
FY2025 EPS = $0.70
FY2028 EPS = $10.68
3 year EPS CAGR = 148%
Currently trading at 25.5x FY2028 EPS (not including cash/debt)
$HIMS
CY2025 revenues = $2.35B
CY2028 revenues = $5.81B
3 year revenue CAGR = 35%
CY2025 EPS = $1.10
CY2028 EPS = $2.55
3 year EPS CAGR = 32%
Currently trading at 13.9x CY2028 EPS (not including cash/debt)
$HROW
CY2025 revenues = $272M
CY2028 revenues = $928B
3 year revenue CAGR = 50%
CY2025 EPS = -$0.14
CY2026 EPS = $1.09
CY2028 EPS = $5.64
2 year EPS CAGR = 127%
Currently trading at 7.6x CY2028 EPS (not including cash/debt)
$IREN
FY2025 revenues = $510M
FY2028 revenues = $6.60B
FY2029 revenues = $9.88B
4 year revenue CAGR = 110%
FY2025 EPS = $0.35
FY2028 EPS = $0.68
FY2029 EPS = $1.33
4 year EPS CAGR = 40%
Currently trading at 45.1x FY2028 EPS (not including cash/debt)
$MELI
CY2025 revenues = $28.89B
CY2028 revenues = $65.81B
3 year revenue CAGR = 32%
CY2025 EPS = $39.40
CY2028 EPS = $90.14
3 year EPS CAGR = 32%
Currently trading at 18.1x CY2028 EPS (not including cash/debt)
$MU
FY2025 revenues = $37.38B
FY2028 revenues = $274.18B
3 year revenue CAGR = 94%
FY2025 EPS = $8.29
FY2028 EPS = $151.32
3 year EPS CAGR = 163%
Currently trading at 7.5x FY2028 EPS (not including cash/debt)
$NBIS
CY2025 revenues = $530M
CY2028 revenues = $22.83B
3 year revenue CAGR = 250%
CY2028 EPS = $5.42
CY2031 EPS = $23.96
Currently trading at 47.8x CY2028 EPS (not including cash/debt)
3 year EPS CAGR from CY2028 through CY2031 = 64%
$RDDT
CY2025 revenues = $2.20B
CY2028 revenues = $6.24B
3 year revenue CAGR = 42%
CY2025 EPS = $4.54
CY2028 EPS = $14.15
3 year EPS CAGR = 46%
Currently trading at 12.3x CY2028 EPS (not including cash/debt)
$TMDX
CY2025 revenues = $605M
CY2028 revenues = $1.34B
3 year revenue CAGR = 30%
CY2025 EPS = $2.63
CY2028 EPS = $6.33
3 year EPS CAGR = 34%
Currently trading at 12.4x CY2028 EPS (not including cash/debt)
NFA.
DYOR.
*I own all of these stocks personally and so does @FirstWaveFund
**If you see any glaring mistakes in my numbers feel free to comment below and I'll double check my work/models.
ENJOY THE LONG WEEKEND.
GO SOCCER!!!!!
⚡ $xSKHY Snapshot
$xSKHY is up $xSKHY 161.15 (+4.93%) as SK Hynix announced a historic 40 trillion won ($28.6B) share buyback and cancellation program to boost value.
Targets: $164.30 & $178.30
Supports: $158.72 & $150.12
Outlook: Holding above $158.70 keeps a rally toward $xSKHY 170+ alive.
DYOR! Not financial advice. ⚡📈#XiaomiQ2Earnings #OKXTraderVoices
Your core point is strong, but I’d make it a little more cautious because the buyback is genuinely significant: SK hynix confirmed a ₩40 trillion buyback and cancellation, covering about 3.3% of outstanding shares, with purchases planned from August 20 to November 19.
$SKHYNIX — Is the Catch-Up Rally Coming? 👀
During the previous storage rally, SK Hynix consistently lagged behind $SNDK and $MU.
This time, the setup looks different.