SK Hynix in ‘triple crown’ in every quarter… Operating profit to be KRW 13 trillion this year
[ Park Jung Il comja77@ ] | 2017-10-27 11:15:30
SK Hynix continued to record high quarterly earnings in the third quarter on the backdrop of the memory semiconductor market boom. The outlook for fourth quarter is also bright, and the annual operating profit should surpass KRW 13 trillion.
SK Hynix, on October 26, revealed that it had recorded sales of KRW 8,100 billion, operating profit of KRW 373 billion, and net profit of KRW 373 billion as of the consolidated financial statement for the third quarter of this year. Sales and operating profit increased by 21% and 23%, respectively.
As a result, cumulative operating profit reached KRW 9.52 trillion by the third quarter of this year, reaching 10 trillion won. The company is expected to post operating profit of around KRW4 trillion in 4Q09, which is likely to surpass KRW13 trillion this year.
Meanwhile, SK Hynix also presented a positive market outlook. "The demand for data centers will continue to grow due to the continued proliferation of cloud services for both DRAM and NAND flash," said Lee Seok-hee, president of SK Hynix`s business management department. The supply shortage will continue until 4Q due to limited supply of products. "
SK Hynix also predicted that such a super cycle will continue into next year. SK Hynix presented DRAM and NAND bit growth estimates at 20% and 20%, respectively, this year and 20% and 30% respectively next year.
As a result, SK Hynix is strengthening its influence and profitability by focusing on high value-added products. DRAM will start mass production of 10-nano products starting with PC products in 4Q and will be expanded to mobile and servers from early next year. NAND flash will produce 72-speed products in the fourth quarter and will supply high-capacity mobile devices and solid-state drives (SSD) from next year. In addition, the company plans to enter the enterprise SSD market from next year.
Also, SK Hynix said, "We will use 50% for NAND flash production, and the other half will use it for equipment necessary for DRAM technology conversion." And we will consider about that. Besides, the question of whether to switch Cheongju NAND flash factory to DRAM stated "we do not have a plan at present".
By Park Jung Il comja77@
