SK Hynix has achieved record earnings, driven by a boom in artificial intelligence (AI) memory, and is embarking on a significant shareholder return initiative. The company plans to return approximately 100 trillion won to shareholders this year through cash dividends and stock buybacks.
According to SK Hynix, the company aims for over 30 trillion won in cash dividends and more than 60 trillion won in stock buybacks and cancellations for the current fiscal year. This amount includes the previously announced 40 trillion won stock buyback from August. The company has committed to utilizing more than 50% of its free cash flow for shareholder returns.
The backdrop for this substantial shareholder return is the company's record performance. On October 28, SK Hynix reported third-quarter revenues of 104.6155 trillion won and an operating profit of 83.3338 trillion won, marking increases of 32% and 38%, respectively, from the previous quarter. This is the first time quarterly revenue has exceeded 100 trillion won, with an operating profit margin reaching 80%. The growth was fueled by increased sales of high-value products such as high-bandwidth memory (HBM4) and server DRAM.
During the board meeting, a cash dividend of 14 trillion won and a stock buyback of 20 trillion won were approved for the third quarter. The dividend will be 20,000 won per share, consisting of a regular dividend of 10,000 won reflecting improved performance and a special dividend of 10,000 won based on the success of the investment in Japan's Kioxia. The company plans to return most of the profits realized from its Kioxia investment to shareholders.
The stock buyback program will continue. On October 21, the company completed a 40 trillion won stock buyback, with plans to cancel those shares. Of the additional 20 trillion won approved, 10 trillion won will also be canceled, while the remaining 10 trillion won will be allocated for employee compensation and will not be included in the shareholder return total.
This decision signifies the company's commitment to sharing the benefits of the AI semiconductor boom with its shareholders. Notably, SK Hynix plans to significantly increase capital expenditures in line with the upcoming operation of its semiconductor cluster in Yongin next year. The strategy aims to enhance production capacity while simultaneously securing growth and shareholder value.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.