The record high revenue?operating profit?net profit? SK Hynix to strengthen ?Group One Top? position
Park Jung Il | comja77@ | 2017-04-26 10:47:12
SK Hynix has achieved record-high profit in the first quarter, boosting semiconductors as its core business. SK Hynix is expected to strengthen its position as a "one-stop" within the group, as its investment target, including the acquisition of Toshiba, is continuing under full support of Chey Tae-won.
SK Hynix announced on April 25 that it recorded revenue of KRW 6.28 trillion, operating profit of KRW 2.46 trillion, and net profit of KRW 1.89 trillion in the first quarter of this year as consolidated financial statements. Sales, operating profit and net profit are both considered as quarterly earnings.
Sales grew 72.0% year on year and operating profit surged up to 339.2% year on year. The operating margin of 39.2% is the second highest ever since 40% recorded in the second quarter of 2004. "Despite seasonally weak season, the growth of the market and the improvement in performance has shown the continued growth potential of the memory market," said Kim Jun-ho, director of SK Hynix`s management support division.
This is more meaningful in that the company achieved in adverse exchange rate conditions. SK Hynix stated in the conference call that the loss on foreign exchange loss due to the receipt of accounts receivable amounted to KRW 156 billion.
As a result, SK Hynix is expected to account for 63% of the group`s the first quarter operating profit of about KRW 4 trillion. When SK Innovation achieved its annual operating loss in 37 years, and at that time SK Hynix had to cover 70% of the Group`s operating profit in 2014, but this time, it is meaningful that it has achieved remarkable performance despite the increase in overall subsidiaries` earnings.
Market outlook is also positive. SK Hynix expects DRAM demand to grow more than 20 percent year on year and NAND flash to increase by 30 % with the release of high-end smartphones and PCs this year. SK Hynix plans to ramp up its market power and profitability by launching 18nm DRAM and 72nm 3D NAND flash.
SK Hynix is expected to become even more aggressive as the company is aggressively investing in semiconductors at the group level. SK Group chairman Chey Tae-won left for Japan on April 24 for acquisition of Toshiba memory, and SK Hynix stated that it will invest KRW 7 trillion in facility investment this year, regardless of whether Toshiba takeover.
Meanwhile, DDR4 (4Gb 512Mx8 / 2133MHz DDR4), which is a general-purpose product for PC DRAM, posted the lowest at USD 1.31 in June, up from USD 2.75 in late February, according to market researcher DRAM Exchange. The same price has been maintained since March 31. NAND flash (64Gb 8Gx8 MLC) also climbed 59%, from USD 2.24 at the end of June last year to USD 3.56 at the end of March.
By Park Jung Il comja77@
[ copyright ⓒ The Digitaltimes ]
SK Hynix announced on April 25 that it recorded revenue of KRW 6.28 trillion, operating profit of KRW 2.46 trillion, and net profit of KRW 1.89 trillion in the first quarter of this year as consolidated financial statements. Sales, operating profit and net profit are both considered as quarterly earnings.
Sales grew 72.0% year on year and operating profit surged up to 339.2% year on year. The operating margin of 39.2% is the second highest ever since 40% recorded in the second quarter of 2004. "Despite seasonally weak season, the growth of the market and the improvement in performance has shown the continued growth potential of the memory market," said Kim Jun-ho, director of SK Hynix`s management support division.
This is more meaningful in that the company achieved in adverse exchange rate conditions. SK Hynix stated in the conference call that the loss on foreign exchange loss due to the receipt of accounts receivable amounted to KRW 156 billion.
As a result, SK Hynix is expected to account for 63% of the group`s the first quarter operating profit of about KRW 4 trillion. When SK Innovation achieved its annual operating loss in 37 years, and at that time SK Hynix had to cover 70% of the Group`s operating profit in 2014, but this time, it is meaningful that it has achieved remarkable performance despite the increase in overall subsidiaries` earnings.
Market outlook is also positive. SK Hynix expects DRAM demand to grow more than 20 percent year on year and NAND flash to increase by 30 % with the release of high-end smartphones and PCs this year. SK Hynix plans to ramp up its market power and profitability by launching 18nm DRAM and 72nm 3D NAND flash.
SK Hynix is expected to become even more aggressive as the company is aggressively investing in semiconductors at the group level. SK Group chairman Chey Tae-won left for Japan on April 24 for acquisition of Toshiba memory, and SK Hynix stated that it will invest KRW 7 trillion in facility investment this year, regardless of whether Toshiba takeover.
Meanwhile, DDR4 (4Gb 512Mx8 / 2133MHz DDR4), which is a general-purpose product for PC DRAM, posted the lowest at USD 1.31 in June, up from USD 2.75 in late February, according to market researcher DRAM Exchange. The same price has been maintained since March 31. NAND flash (64Gb 8Gx8 MLC) also climbed 59%, from USD 2.24 at the end of June last year to USD 3.56 at the end of March.
By Park Jung Il comja77@