Profits and share price seem to exist in two different worlds for SK Hynix.
Second-quarter revenue was 79.3 trillion won, operating profit was 60.5 trillion, and the profit margin was 76%—a new quarterly record. A 76% profit margin for a memory-chip maker was once unimaginable.
In the same quarter a year ago, operating profit was only 9.2 trillion won, meaning it jumped 557% in a year. First-half revenue also topped 100 trillion won for the first time.
For tomorrow’s third-quarter results, FnGuide’s consensus estimate is operating profit of around 77 trillion won and a margin of about 78%—another record high.
But the share price isn’t buying it. SK Hynix shares fell from 1.776 million won at the end of September to 1.223 million won on October 22, a 31% drop in three weeks.
The market isn’t worried about this quarter; it’s worried about next year. If AI investment slows, no one can guarantee how long such high profit margins can last.
There’s another easily overlooked point: the second quarter actually fell short of expectations. LSEG’s estimate, reported by Reuters, was 64 trillion won; the actual figure was 60.5 trillion.
So tomorrow isn’t about the record—it’s about expectations.
At the conference call tomorrow at 8 a.m., management’s comments on demand next year could shape the stock’s direction more than this quarter’s numbers.
Do you think operating profit will top 77 trillion won this time?
$SKHY #股票财报季
The above reflects my personal views only and does not constitute investment advice.
Second-quarter revenue was 79.3 trillion won, operating profit was 60.5 trillion, and the profit margin was 76%—a new quarterly record. A 76% profit margin for a memory-chip maker was once unimaginable.
In the same quarter a year ago, operating profit was only 9.2 trillion won, meaning it jumped 557% in a year. First-half revenue also topped 100 trillion won for the first time.
For tomorrow’s third-quarter results, FnGuide’s consensus estimate is operating profit of around 77 trillion won and a margin of about 78%—another record high.
But the share price isn’t buying it. SK Hynix shares fell from 1.776 million won at the end of September to 1.223 million won on October 22, a 31% drop in three weeks.
The market isn’t worried about this quarter; it’s worried about next year. If AI investment slows, no one can guarantee how long such high profit margins can last.
There’s another easily overlooked point: the second quarter actually fell short of expectations. LSEG’s estimate, reported by Reuters, was 64 trillion won; the actual figure was 60.5 trillion.
So tomorrow isn’t about the record—it’s about expectations.
At the conference call tomorrow at 8 a.m., management’s comments on demand next year could shape the stock’s direction more than this quarter’s numbers.
Do you think operating profit will top 77 trillion won this time?
$SKHY #股票财报季
The above reflects my personal views only and does not constitute investment advice.
