2024-04-25 03:38:38
– Sales of 12.4296 trillion KRW, operating profit of 2.886 trillion KRW…NAND also became profitable
– At 12:40 p.m., the stock price fell 6,900 won (3.84%) to 172,900 won.
Evolution of the SK Hynix share price over 6 months. Despite SK Hynix announcing record first quarter results on the 25th, the stock price showed a downward trend. (HTS capture from KB Securities)
[인사이드비나=문동원 기자] SK Hynix reported surprise earnings with record first-quarter performance on the 25th, but its stock price fell.
SK Hynix announced during the performance presentation that day that it recorded sales of 12.4296 billion KRW, operating profit of 2.886 billion KRW (operating profit margin of 23%) and net profit of KRW 1,917 billion (net profit margin of 15%) in the first quarter. based on K-IFRS.
Sales are the highest ever in the first quarter and operating profit is the second highest since 2018, which was the biggest boom period in the first quarter. SK Hynix has escaped the lasting slowdown and is entering a clear trend of performance recovery. consider it inclusive.
SK Hynix said: “With our leadership in AI memory technologies such as HBM, we have increased sales of AI server products while continuing to focus on profitability, resulting in a 734% increase in revenue. operating profit compared to the previous quarter,” adding: “NAND also saw an increase in sales share of eSSD, a premium product. He highlighted: “The average selling price (ASP) increased and we managed to make a profit, which is of great importance.
SK Hynix predicts that the memory market will continue to grow steadily this year, as demand for AI memory continues to increase and general DRAM demand also recovers from the second half of the year. Furthermore, as the production of high-end products such as HBM (High Bandwidth Memory), which require greater production capacity than general DRAM, increases, the supply of general purpose DRAM is expected to decrease relatively, leading to the exhaustion of stocks held by Suppliers and customers are on the lookout.
SK Hynix decided to increase the supply of HBM3E, which began mass production for the first time globally in March, in response to expanding demand for AI memory, while expanding its customer base. Additionally, the company plans to strengthen its leadership in the high-capacity server DRAM market, where it has continued to be strong, by launching 5th generation (1b) 10-nanometer DDR5 products during the year of 32 GB.
In the case of NAND, SK Hynix said it plans to continue product optimization to continue the trend of improved performance. In addition to the high-performance 16-channel eSSD, in which the company enjoys strong competitiveness, the company is actively increasing sales of the high-capacity eSSD based on QLC (Quadruple Level Cell) of its subsidiary Solidigm, and timely launches 5th generation PCIe. cSSD for AI-oriented PCs to optimize performance. The aim is to meet market demand with a range of products.
Furthermore, as announced the day before, SK Hynix has decided to make timely investments to increase its capacity, including choosing a new factory, Cheongju M15X, as its DRAM production base and accelerating 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 world’s No. 1 AI memory technology centered on HBM, we have started a real rebound,” adding: “We We will continue to improve our performance through the timely delivery of the most efficient 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 p.m., SK Hynix’s stock price was trading at 172,900 won, down 6,900 won (3.84%) from the previous trading day.
This drop in SK Hynix’s stock price is interpreted as the fact that the stock price continued to rise due to expectations of good performance, including the supply of HBM to the American semiconductor company NVIDIA , and the sale of quotations for profit.
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