– Sales KRW 12.4296 trillion, operating profit KRW 2.886 trillion … NAND also turned profitable
– As of 12:40 pm, the stock price fell 6,900 won (3.84%) to 172,900 won.
SK Hynix stock price trend for 6 months. Despite SK Hynix’s record first quarter earnings announcement on the 25th, the stock price showed a downward trend. (KB Securities HTS Capture)
[인사이드비나=문동원 기자] SK Hynix announced an earnings surprise with a record-breaking performance for the first quarter on the 25th, but its stock price fell.
SK Hynix announced in the performance presentation that day that it recorded sales of KRW 12.4296 trillion, operating profit of KRW 2.886 trillion (operating profit margin 23%), and net profit of KRW 1.917 trillion (net profit margin 15%) in the quarter first based on K-IFRS.
Sales are at a record high in the first quarter, and operating profit is the second highest since 2018, which is the biggest boom period in the first quarter, SK Hynix has escaped the long-term decline and is entering a trend clear performance recovery is included.
SK Hynix said, “Based on our leadership in AI memory technology as HBM, we increased sales of AI server products while continuing to focus on profitability, resulting in a 734% increase in operating profit compared to the previous quarter,” adding, “ NAND also saw an increase in the share of eSSD sales, a premium product. He emphasized, “The average selling price (ASP) has risen and we have managed to turn a profit, which is very significant.”
SK Hynix predicted that the memory market will continue to grow steadily this year as demand for AI memory continues to increase and overall DRAM demand also recovers from the second half of the year. In addition, as the production of premium products such as HBM (High Bandwidth Memory), which require more production capacity than general DRAM, increases, the supply of general purpose DRAM is expected to decrease relatively, leading to inventory depletion held by suppliers and customers.
SK Hynix decided to increase the supply of HBM3E, which started mass production for the first time in the world in March, in response to expanding demand for AI memory, while expanding its customer base. In addition, the company plans to strengthen its leadership in the high-capacity server DRAM market, where it has remained strong, by launching 10-nano 5th generation (1b) products based on 32Gb DDR5 within the year .
In the case of NAND, SK Hynix said it plans to pursue product optimization to continue the performance improvement trend. In addition to the high-performance 16-channel eSSD, in which the company has strong competition, the company is actively increasing sales of its subsidiary Solidigm’s QLC (Quadruple Level Cell) high-capacity eSSD, and launching the 5th generation PCIe is timely. cSSD for personal computers that focuses on AI to optimize its performance The aim is to respond to market demand with a product.
In addition, as announced the previous day, SK Hynix decided to make timely investments to expand capacity, including deciding on a new son, Cheongju M15X, as the base of DRAM production and speeding up construction. In the medium to long term, the company plans to proceed smoothly with future investments such as the Yongin semiconductor cluster and the Indiana Advanced Packaging Plant in the United States.
Kim Woo-hyun, Vice President (CFO) of SK Hynix said, “Based on the global No. 1 AI memory technology focused on HBM, we have started a full rebound,” adding, “We will continue to improve our performance through timely supply of the highest performance products and a management policy focused on profitability.”
Meanwhile, despite today’s surprise earnings announcement, SK Hynix’s stock price is showing a relatively large decline. As of 12:40, SK Hynix stock price is trading at 172,900 won, down 6,900 won (3.84%) from the previous trading day.
This decline in SK Hynix’s stock price is interpreted as the fact that the stock price has continued to rise due to expectations of good performance, including the supply of HBM to the US semiconductor company NVIDIA, and profit-making listings are put up for sale.
Copyright © Inside Vina Unauthorized reproduction and redistribution prohibited
#Hynix #surprise #quarter #earnings.. #Sales #operating #profit #alltime #high #stock #price #falls
