SK Hynix Stock Price Falls Despite Record Earnings Surprises

– 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.

[인사이드비나=문동원 기자] SK Hynix announced an earnings surprise with record performance for the first quarter on the 25th, but its stock price fell.

SK Hynix announced at 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 first season. based on K-IFRS.

Sales are at an all-time high in the first quarter, and operating profit is at the second highest level since 2018, which was the first quarter’s most successful period to be seen as taken a -in.

SK Hynix said, “Based on our leadership in AI memory technology such as HBM, we increased sales of AI server products while continuing to focus on profitability, resulting in a 734% increase in operating profit compared compared to the previous quarter,” adding, “NAND also saw an increase in the share of eSSD sales, a key product.

SK Hynix expected the memory market to continue growing steadily this year as demand for AI memory continues to increase and demand for general DRAM also recovers from the second half of the year. In addition, as the production of key 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 significantly, leading to depreciation of inventory held. suppliers and customers.

SK Hynix decided to increase supply of HBM3E, which began 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 DRAM server market, where it has been strong, by launching 10-nano 5th generation products (1b) based on 32Gb DDR5 within the year.

As for 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 competitiveness, the company is actively increasing sales of its high-capacity eSSD based on QLC (Quadruple Level Cell) based on Solidigm, and launching the 5th PCIe generation in good time. cSSD for PCs based on AI to optimize its performance.

In addition, as announced the day before, SK Hynix decided to make timely investments to expand capacity, including the decision on a new fab, Cheongju M15X, as a DRAM production base and acquisition to accelerate In the medium to long term, the company plans to continue unabated with future investments such as the Yongin semiconductor cluster and the Indiana Advanced Packaging Center in the United States.

Kim Woo-hyun, Vice President (CFO) of SK Hynix said, “Based on the global No. 1 AI memory technology based on HBM, we have embarked on a full-scale turnaround,” adding, “We will continue continue to improve our performance through the timely supply of the highest performing products and a management policy that focuses on profitability.”

Meanwhile, despite today’s surprise earnings announcement, SK Hynix’s stock price is showing a significant decline. As of 12:40, the stock price of SK Hynix is ​​trading at 172,900 won, down 6,900 won (3.84%) from the previous trading day.

This decline in the SK Hynix stock price is explained by 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 listings are sold.

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