| A view of SK hynix M16. (Provided by SK hynix) 2021.2.1/News 1 |
SK Hynix is expected to record strong earnings in the third quarter of this year thanks to the rise in memory semiconductor prices. The reason for the strong performance is the DRAM price, which has risen to the $4 level for the first time in about two years since April 2019.
According to market research firm FnGuide’s consensus on the 25th (average of forecasts by securities companies), SK Hynix is expected to record 11.75 trillion won in consolidated sales and 4.72.3 trillion won in operating profit in the third quarter of this year. Sales and operating profit are projected to increase by 44.56% and 213.32%, respectively, compared to the same period last year.
SK hynix surpassed 10 trillion won in quarterly sales for the first time since 2018, during the semiconductor supercycle (super boom) period in the second quarter.
The reason SK Hynix can record such good results in the third quarter is thanks to the increase in memory semiconductor (DRAM, NAND flash) prices. According to DRAM Exchange, a market research company, the fixed transaction price for general-purpose products for DRAM PCs (DDR4 8Gb 1Gx8 2133 MHz) in August was the same as in July, recording $4.1. This product entered the $4 range in July for the first time in over two years since April 2019.
The fixed transaction price of 128Gb 16Gx8 MLC, a general-purpose NAND flash product, also recorded $4.81 in August, which also recorded the highest level in about three years since September 2018 in July.
Do-yeon Choi, a researcher at Shinhan Financial Investment, said, “SK Hynix’s earnings in the third quarter of this year are expected to improve significantly compared to the previous quarter due to the effect of the price increase of memory semiconductors.”
The industry is predicting SK Hynix’s strong performance in the third quarter, but cannot guarantee the fourth quarter. This is because memory semiconductor prices are expected to decline in the fourth quarter.
TrendForce, a market research firm, predicted a decline in memory semiconductor prices in the fourth quarter through a recent report. DRAM prices are expected to fall by an average of 3% to 8%, and NAND flash prices are also expected to fall by an average of 0% to 5%.
TrendForce said, “DRAM production peaked in the third quarter, and DRAM supply will exceed demand from the fourth quarter.” Demand for storage products for storage is still sluggish,” he said.
Some analysts say that the decline in memory semiconductor prices in the fourth quarter is ‘temporary’. Research Fellow Choi Do-yeon said, “Although the 4Q earnings uncertainty is high, the nature of inventory adjustments at downstream companies is different and the supply burden is limited.” “It makes sense to take a cycle approach.”
dkim@news1.kr
