SK hynix Estimated to Have Purchased 20 Trillion Won in Bonds This Year
Auf einen Blick
- SK hynix has reportedly bought approximately 20 trillion won (US$13.2 billion) in bonds this year, driven by record earnings in the semiconductor industry.
- The chipmaker is investing its swelling cash reserves in various high-grade credit products to manage excess liquidity.
KI-generierte Zusammenfassung
Warum es wichtig ist
SK hynix is a major South Korean chipmaker that has experienced record earnings due to the booming chip industry. The company's cash holdings have significantly increased, leading to strategic investments in the domestic credit market.
SEOUL, July 8 (Yonhap) -- South Korean chipmaker SK hynix Inc. is estimated to have purchased about 20 trillion won (US$13.2 billion) worth of bonds this year as record earnings from the booming chip industry swelled its cash holdings, industry sources said Wednesday.
The chip giant's purchases span a broad range of high-grade credit products, including bonds issued by Korea Electric Power Corp., other public institutions, banks, financial firms, securities companies and specialized credit finance companies, the sources said.
Industry observers said SK hynix has emerged as one of the largest investors in the domestic credit market as its record-breaking semiconductor earnings have sharply boosted its cash holdings, creating a need for short-term investment vehicles to manage excess liquidity.
SK hynix posted record first-quarter earnings, reporting 52 trillion won in revenue and 37 trillion won in operating profit.
Its cash and cash equivalents totaled 54.3 trillion won at the end of the January-March period, up 19.4 trillion won from three months earlier.
Reflecting its strong earnings momentum, SK hynix shares have surged more than 1,300 percent from their low in April last year.
On June 22, the company briefly overtook chip rival Samsung Electronics Co. to become South Korea's most valuable listed company by market capitalization for the first time in 25 years.
SK hynix and Samsung Electronics are currently vying for the top spot in market capitalization.
Offene Fragen
- What specific yields are SK hynix targeting?
- Will SK hynix continue this investment strategy long-term?
