THE ANALYST EXPECTS SK HERCULES TO PUBLISH HIS BUY-BACK PLAN “PROMPTLY”

On 5 August, the company ' s stock price went up as a result of the overnight increase in the stock price of the United States chip manufacturer and market speculation that SK Hercules might soon publish the stock buy-back plan and details of other shareholder return plans. As an important supplier of British Weedda's bandwidth memory chip, SK Hercules rose by 7.9 per cent in the Seoul deal on Wednesday morning, surpassing 6 per cent of his competitors' three-star electronics. Analysts and local Korean media focused on the “quiet period” of 25 trading days that ended after the release of the SK Hercules American Depository Certificate (ADR), which ended on 4 August. The market expects that the end of the silent period will clear the way for companies to disclose shareholder return plans. According to the independent analyst Douglas Kim: “In my view, given the end of the quiet period on 4 August, it is likely that SK Hercules will soon announce a major shareholder return plan”. He indicated that the plan “may include a combination of options such as stock buy-backs, stock cancellations and special dividends”. A number of coupons, including William Blair, issued their first “buy-in” rating to SK Hercules ADR overnight. Kim Xian