SK hynix, which announced a shareholder return plan worth 100 trillion won alongside its all-time high earnings, surged by more than 10% to reclaim the 1.4 million-won range.
The securities industry assessed that concerns over a peak-out (earnings peak), which had previously weighed on the stock price, have eased as visibility into memory sales has improved through 2029. Additionally, an additional share buyback worth 20 trillion won is expected to support supply and demand, which had been shaken by foreign selling pressure, thereby strengthening the momentum for the stock price increase.
On Wednesday, in the KOSPI market, SK hynix closed trading at 1,487,000 won, up 146,000 won (10.89%) from the previous trading day. It recovered the 1.4 million-won range for the first time in 10 trading days. This was influenced by a shift in investor sentiment following the announcement of record-high earnings and a large-scale shareholder return plan.
SK hynix announced its Q3 2026 results, which exceeded market expectations. Revenue was 104.6155 trillion won, and operating profit was 83.3334 trillion won, both all-time highs. The operating profit margin reached 79.7%.
The securities industry emphasized that attention should be focused on securing medium- to long-term earnings visibility rather than the record-high results themselves.
On this day, SK hynix revealed that its LTA (Long-Term Agreement) customers expanded from approximately 10 to 14 companies, and that more than 50% of its CAPA (production capacity) for 2027 and 2028 has been filled with LTAs. According to SK hynix, considering confirmed LTAs and volumes under negotiation with customers, DRAM and HBM (High Bandwidth Memory) will effectively have secured buyers through 2029.
Lee Kyung-min, Head of the FICC Research Department at Daishin Securities, also stated, "Through SK hynix's strong results and LTA expansion, we have reconfirmed a solid outlook for memory demand and earnings growth," adding, "In addition, with the supply-demand buffering effect from large-scale shareholder returns, we expect the stock price's downside support and rebound elasticity to be strengthened."
As long-term profitability has been secured, foreign investors, who had maintained a net selling stance for four consecutive trading days, turned to net buying for the first time in five trading days. On this day, foreign investors made net purchases of SK hynix worth 384.4 billion won.
Researcher Lee Jae-won from Yuanta Securities explained, "This is a process of crossing a critical threshold where concerns over the sustainability of AI investment and theories of a memory earnings peak are being refuted by actual results," adding, "With foreign buying pressure accompanying this, we are positively passing the halfway point of the stock market rebound."
The announcement of large-scale additional shareholder returns is also expected to have a positive impact on the stock price. SK hynix announced that it will pursue shareholder returns worth approximately 100 trillion won in 2026.
Of this, cash dividends will exceed 30 trillion won, while share buybacks and cancellations are planned to be over 60 trillion won. The return of treasury shares includes the existing 40 trillion-won purchase that was conducted until the 21st.
Researcher Ryu Hyeong-geun from Daishin Securities stated, "In the memory semiconductor industry, where financial strength is crucial, strengthening shareholder returns through the redistribution of investment profits expresses strong confidence in the cycle," adding, "Since the stock price has not yet fully reflected this value, it is a time when an aggressive strategy to increase holdings is effective."
In particular, the additional 20 trillion-won share buyback is expected to support the stock price from a supply and demand perspective for the time being. On this day, SK hynix disclosed that it will purchase 20 trillion won worth of treasury shares over three months, starting from the 29th until January 28 next year.
Researcher Lee Jae-won said, "The new share buyback is a positive issue that can actually reinforce the domestic buying base, which has weakened after the supply-demand gap created by the recent end of the previous share buyback."
in STOCK
