Samsung, SK Hynix Face Pressure to Boost Shareholder Returns

Dow Jones10-14

0757 GMT - Samsung Electronics and SK Hynix face growing market expectations for more aggressive shareholder returns, as concerns about intensifying competition from Chinese rival CXMT could put further pressure on their shares in the near term, Douglas Kim of Douglas Research Advisory says. Investors are looking to the companies' 3Q earnings conference calls for greater clarity on their shareholder-return plans and business outlook, he writes on Smartkarma. The market expects Samsung to return 60 trillion won to 80 trillion won to shareholders through share buybacks or cancellations, on top of 30 trillion won in dividends already announced for this year, Kim says. He expects SK Hynix's shareholder returns to total 82 trillion won this year, as the company nears completion of its previously announced 40 trillion won share buyback or cancellation plan.

 

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