SK hynix Achieves Record-Breaking Q3 2024 Results, Driven by AI Memory Demand

SK hynix Announces 3Q24 Financial Results By Investing.com

SEOUL, South Korea, Oct. 23, 2024 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that it recorded 17.5731 trillion won in revenues, 7.03 trillion won in operating profit (with an operating margin of 40%), and 5.7534 trillion won in net profit (with a net margin of 33%) in the third quarter this year. Quarter revenues marked all-time high, exceeding the previous record of in the second quarter of this year by more than . Operating profit and net profit also far exceeded the record of and in the third quarter of 2018 during the semiconductor super boom. SK hynix emphasized that the demand for AI memory continued to be strong centered on data center customers, and the company marked its highest revenue since its foundation by expanding sales of premium products such as HBM and eSSD. In particular, HBM sales showed excellent growth, up more than 70% from the previous quarter and more than 330% from the same period last year. As sales increased mainly on highly profitable premium products, the average selling price (ASP) of both DRAM and NAND rose in the mid 10% range compared to the previous quarter, which made the company mark the highest operating profit. While the demand of memory for AI servers such as HBM and eSSD has grown noticeably this year, the company predicts that this trend will continue next year. This is because generative AI is developing into a multi-modal form and global big tech companies continue to invest to develop artificial general intelligence (AGI) SK hynix also forecasts that the PC and mobile product markets, which had been slow to recover demand compared to memory for AI servers, will be on a steady growth path as well next year as AI memories optimized for each device are released. As a result, the company will continue to focus on profitability by increasing sales centered on high value-added products based on its world-leading technology in AI memory. In the DRAM area, SK hynix is continuing the rapid transition from existing HBM3 to HBM3E 8-layer products. The company also plans to start supplying 12-layer HBM3E products, which were mass-produced last month, in the fourth quarter as scheduled. This makes HBM sales, which accounted for 30% of total DRAM revenues in the third quarter, expected to reach 40% in the fourth quarter. For NAND, the company plans to expand sales of high-capacity eSSD, which is rapidly increasing market demand, while focusing on investment efficiency and production optimization. "SK hynix has solidified its position as the world's No.1 AI memory company by achieving the highest business performance ever in the third quarter of this year." said Kim Woohyun, Vice President and Chief Financial Officer (CFO) at SK hynix. "We will continue to maximize profitability while securing stable revenues by taking flexible product and supply strategies in line with market demand." About SK hynix Inc. (KS:000660) SK hynix Inc., headquartered in , is the world's top tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM"), flash memory chips ("NAND flash") and CMOS Image Sensors ("CIS") for a wide range of distinguished customers globally. The Company's shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

SK hynix Announces 3Q24 Financial Results - (HXSCL)

Revenues at 17.5731 trillion won, operating profit at 7.03 trillion won, net profit at 5.7534 trillion won - all reaching new recordsAchieving best-ever quarterly performance with increasing high value-added product sales based on no.1 AI Memory technologyStrong demand of memory for AI servers - HBM's share of DRAM revenues in Q3 marks 30% and forecast to be 40% in Q4Company to lead the global AI memory market again next year promoting long-term growth by securing both business stability and profitability SEOUL, South Korea, Oct. 23, 2024 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that it recorded 17.5731 trillion won in revenues, 7.03 trillion won in operating profit (with an operating margin of 40%), and 5.7534 trillion won in net profit (with a net margin of 33%) in the third quarter this year. Quarter revenues marked all-time high, exceeding the previous record of 16.4233 trillion won in the second quarter of this year by more than 1 trillion won. Operating profit and net profit also far exceeded the record of 6.4724 trillion won and 4.6922 trillion won in the third quarter of 2018 during the semiconductor super boom. SK hynix emphasized that the demand for AI memory continued to be strong centered on data center customers, and the company marked its highest revenue since its foundation by expanding sales of premium products such as HBM and eSSD. In particular, HBM sales showed excellent growth, up more than 70% from the previous quarter and more than 330% from the same period last year. As sales increased mainly on highly profitable premium products, the average selling price (ASP) of both DRAM and NAND rose in the mid 10% range compared to the previous quarter, which made the company mark the highest operating profit. While the demand of memory for AI servers such as HBM and eSSD has grown noticeably this year, the company predicts that this trend will continue next year. This is because generative AI is developing into a multi-modal1 form and global big tech companies continue to invest to develop artificial general intelligence (AGI)2. 1Multi-modal: AI service that can understand multiple complex information such as text, photos, voice, video, etc. 2Artificial General Intelligence: Artificial intelligence that implements human-like or higher intelligence with a computer SK hynix also forecasts that the PC and mobile product markets, which had been slow to recover demand compared to memory for AI servers, will be on a steady growth path as well next year as AI memories optimized for each device are released. As a result, the company will continue to focus on profitability by increasing sales centered on high value-added products based on its world-leading technology in AI memory. In the DRAM area, SK hynix is continuing the rapid transition from existing HBM3 to HBM3E 8-layer products. The company also plans to start supplying 12-layer HBM3E products, which were mass-produced last month, in the fourth quarter as scheduled. This makes HBM sales, which accounted for 30% of total DRAM revenues in the third quarter, expected to reach 40% in the fourth quarter. For NAND, the company plans to expand sales of high-capacity eSSD, which is rapidly increasing market demand, while focusing on investment efficiency and production optimization. "SK hynix has solidified its position as the world's No.1 AI memory company by achieving the highest business performance ever in the third quarter of this year." said Kim Woohyun, Vice President and Chief Financial Officer (CFO) at SK hynix. "We will continue to maximize profitability while securing stable revenues by taking flexible product and supply strategies in line with market demand." 3Q24 Financial Results (K-IFRS) *Unit: Billion KRW 3Q24 QoQ YoY 2Q24 Change 3Q23 Change Revenues 17,573.1 16,423.3 7 % 9,066.2 94 % Operating Profit 7,030 5,468.5 29 % -1,792 Turn to profit Operating Margin 40 % 33 % 7%p -20 % 60%p Net Income 5,753.4 4,120 40 % -2,184.7 Turn to profit Financial information of the earnings is based on K-IFRSPlease note that the financial results discussed herein are preliminary and speak only as of October 24, 2024. Readers should not assume that this information remains operative at a later time. About SK hynix Inc. SK hynix Inc., headquartered in Korea, is the world's top tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM"), flash memory chips ("NAND flash") and CMOS Image Sensors ("CIS") for a wide range of distinguished customers globally. The Company's shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com. View original content:https://www.prnewswire.com/news-releases/sk-hynix-announces-3q24-financial-results-302285211.html SOURCE SK hynix Inc. Market News and Data brought to you by Benzinga APIs