South Korean chip giant SK Hynix delivered impressive third-quarter results, with both revenue and operating profit hitting record highs and driving a sharp rise in its share price.
The earnings report showed that the company’s third-quarter revenue reached 104.62 trillion won (about $78.9 billion), surpassing 100 trillion won in a single quarter for the first time. Operating profit came to 83.33 trillion won, with a profit margin of 80%. Both figures significantly exceeded market expectations.
One key reason for the growth was rising memory chip prices. Management said the average selling price of DRAM rose by more than 20% from the second quarter, indicating strong demand and pricing power for these chips.
However, net profit fell 58% quarter over quarter to 39.78 trillion won, below market expectations. The main reason was a one-off gain from the sale of some Kioxia shares in the previous quarter, which created a high comparison base. This does not fully reflect a deterioration in the core business.
Buoyed by the positive news, SK Hynix shares rose 5.67% on Wednesday, while Samsung Electronics gained 6.98% and the KOSPI rose 4.94%, as chip stocks rebounded across the board.
It is worth noting that the market had still been concerned that future earnings in South Korea’s chip industry could decline. Strong quarterly results do not necessarily mean that growth will continue.#SK海力士拟追加约450亿美元股东回报
The earnings report showed that the company’s third-quarter revenue reached 104.62 trillion won (about $78.9 billion), surpassing 100 trillion won in a single quarter for the first time. Operating profit came to 83.33 trillion won, with a profit margin of 80%. Both figures significantly exceeded market expectations.
One key reason for the growth was rising memory chip prices. Management said the average selling price of DRAM rose by more than 20% from the second quarter, indicating strong demand and pricing power for these chips.
However, net profit fell 58% quarter over quarter to 39.78 trillion won, below market expectations. The main reason was a one-off gain from the sale of some Kioxia shares in the previous quarter, which created a high comparison base. This does not fully reflect a deterioration in the core business.
Buoyed by the positive news, SK Hynix shares rose 5.67% on Wednesday, while Samsung Electronics gained 6.98% and the KOSPI rose 4.94%, as chip stocks rebounded across the board.
It is worth noting that the market had still been concerned that future earnings in South Korea’s chip industry could decline. Strong quarterly results do not necessarily mean that growth will continue.#SK海力士拟追加约450亿美元股东回报