SK Hynix Inc. (000660)

Equity Research 19 August 2026 | 11:41PM SGT

SK Hynix Inc. (000660.KS) Announces W40tn share buyback/cancellation, with more to come; expect positive impact on EPS and share price; reiterate Buy

000660.KS 12m Price Target: W3,500,000 Price: W1,500,000 Upside: 133.3% BUY Giuni Lee After market close on August 19, Hynix announced a W40tn share | Goldman Sachs (Singapore) Pte buyback and cancellation, which implies approximately 3.3% of Taeyong Lee issued shares based on August 18 closing price. Share buyback is | Goldman Sachs (Asia) L.L.C., Seoul Branch expected to commence from August 20 and will be executed within 3 months with daily purchase volumes undefined. Daiki Takayama | Goldman Sachs Japan Co., Ltd. As for the reason behind today’s share buyback announcement, Hynix stated that current share price does not accurately reflect its Key Data _____________________________________ value, and therefore decided for a share buyback and cancellation Market cap: W1,059.0tr / $750.2bn Enterprise value: W1,015.0tr / $719.0bn for effective capital allocation and shareholder value enhancement. 3m ADTV: W12.0tr / $8.0bn South Korea Hynix also updated its shareholder return target from 50% to a Korea Technology minimum 50% of 3-year cumulative FCF, which would be executed M&A Rank: 3 Leases incl. in net debt & EV?: Yes through both share buyback and dividends. The company is also GS Forecast __________________________________ considering to expand its dividends including both fixed and special 12/25 12/26E 12/27E 12/28E

dividends, and plans to update a detailed shareholder return plan Revenue (W bn) New Revenue (W bn) Old 97,146.7 345,480.8 97,146.7 345,480.8 499,591.8 499,591.8 592,399.6 592,399.6 including both buybacks and dividends around its 3Q26 earnings EBITDA (W bn) 61,136.4 281,903.6 412,441.8 473,065.6 EPS (W) New 62,158 399,504 491,918 560,997 call (expected end-October). EPS (W) Old 62,158 385,716 446,813 510,395 P/E (X) 5.0 3.8 3.0 2.7 P/B (X) 1.8 2.9 1.7 1.1 Implications from the W40tn buyback and cancellation Dividend yield (%) 1.0 2.7 5.3 6.0 CROCI (%) n Based on its recent quarterly dividend disclosure on August 7 when it also mentioned that it will announce an additional EPS (W) 6/26 135,792 9/26E 90,629 12/26E 106,066 3/27E 107,288 shareholder return plan within 3Q26, as well as our recent GS Factor Profile ______________________________ discussion with investors, we believe the general expectation Growth

from the market was that Hynix would announce an additional Financial Returns

shareholder return plan around end-August to early-September, Multiple so we believe this announcement was slightly earlier-than-expected. Integrated

n We believe another positive takeaway was that the company Percentile 20th 40th 60th 80th 100th

implied that this additional shareholder return was not a 000660.KS relative to Asia ex. Japan Coverage

one-time event, but there would likely be more to come 000660.KS relative to Korea Technology

including both buybacks and dividends, with the details likely Source: Company data, Goldman Sachs Research estimates. See disclosures for details. out around end-October.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs SK Hynix Inc. (000660.KS)

SK Hynix Inc. (000660.KS) Income Statement (W bn) ___________________________________ BUY Rating since Oct 30, 2025 12/25 12/26E 12/27E 12/28E Total revenue 97,146.7 345,480.8 499,591.8 592,399.6 Cost of goods sold (38,455.9) (55,527.6) (70,237.1) (91,538.3) SG&A (5,018.8) (14,515.0) (27,275.1) (42,537.3) Ratios & Valuation __________________________________________ R&D (6,465.6) (9,953.9) (10,358.1) (10,778.7) 12/25 12/26E 12/27E 12/28E Other operating inc./(exp.)…