SK Hynix Unveils Shareholder Return Plan; Checking Key Semiconductor, Defense, and Nuclear Stocks

SK Hynix announced its shareholder return policy after the market closed. The news helped it recover much of its post-market decline. While the U.S. Treasury is discussing expanding buybacks, most U.S. semiconductor stocks are struggling, though some companies such as Micron are holding up relatively well.

The key points of SK Hynix's shareholder return policy can be summed up in three areas. First, whether repurchased shares will be canceled. Second, the size of the special dividend, with details expected to be announced in October. Lastly, whether the return policy will be sustained is seen as an important factor.

A gradual rise is expected rather than a sharp rally. Samsung plans to unveil a three-year shareholder return policy this month, drawing concentrated market attention.

Compared with the first half, the market-moving power and influence of large-cap stocks such as Samsung Electronics and SK Hynix has indeed declined. As a result, it has become more important at this point to reorganize and diversify portfolio strategies beyond large caps.

Against this backdrop, global IT companies are trending toward strengthening shareholder returns.

When selecting semiconductor parts and materials stocks, several characteristics should be considered. First, whether the company holds a technological moat and a dominant position. Second, whether it is likely to be adopted for new technologies such as Samsung's next-generation processes or SK Hynix's HBM. Lastly, whether it can scale across the three global memory makers is also an important criterion.

The U.S. defense market is large but has high entry barriers, so signing a prototype supply contract is highly meaningful. Whether a mass production contract follows will depend on test results and program progress, and if it does, the business size is expected to exceed 10 trillion won.

The aim is to centralize defense capabilities previously scattered across multiple affiliates, including Hyundai WIA, under Hyundai Rotem and pursue vertical integration of the production supply chain. As a result, Hyundai Rotem surpassed a backlog of 30 trillion won in the second quarter.

However, since this is a priority participation right, whether it leads to a definitive contract requires further confirmation. TerraPower's current main EPC contractor is Bechtel, and Hyundai E&C's key challenge is securing an equity stake; it is attracting expectations as a core partner for SMRs (small modular reactors).

Doosan Enerbility, which has core SMR main equipment manufacturing capabilities, is therefore highly likely to play a foundry-like role in the SMR market, and this is expected to help bring forward the timing of SMR commercialization.

The impact of interest rates on our market is judged to be largely reflected already. As a result, the market may attempt a rebound today, buoyed by several positive news items. However, what matters is not the rebound itself but how the strength and continuity of that rebound unfold.