SK hynix posts record earnings, beats forecasts

SK hynix reported record quarterly earnings in the first quarter, propelled by surging demand for memory chips. The company posted an operating profit of 37.6 trillion won, with its operating margin reaching 72.0 percent, surpassing that of NVIDIA.

In a regulatory filing Wednesday, SK hynix said it recorded 52.58 trillion won in revenue and 37.61 trillion won in operating profit on a consolidated basis for the January–March period. Revenue rose 198.1 percent from a year earlier, while operating profit jumped 405.5 percent. Compared with its previous record set in the fourth quarter of last year, revenue increased 60.2 percent and operating profit nearly doubled, up 96.2 percent. Some market forecasts had projected operating profit above 40 trillion won, but the result came in below that level.

The standout figure was the operating margin. At 72.0 percent, it translates to 7,200 won in profit for every 10,000 won in sales, an exceptionally high level for a manufacturing business. By comparison, NVIDIA posted a 65.0 percent operating margin in the fourth quarter of last year, while TSMC and Samsung Electronics reported margins of 58.1 percent and 43.0 percent, respectively.

Industry analysts expect SK hynix’s annual operating profit to exceed 200 trillion won this year, as demand for memory chips used in AI data centers continues to outpace supply. Kim Woo-hyun, the company’s chief financial officer, said during a conference call that demand is rising sharply while supply remains tight. In that environment, customers are prioritizing securing supply over price, supporting a sustained uptrend in pricing. He added that favorable pricing conditions are likely to continue for now.

The earnings surprise helped push the benchmark KOSPI to a record high for a third straight session Wednesday. The index closed up 0.9 percent at 6,475.81, setting a new closing record, and briefly crossed the 6,500 mark for the first time during intraday trading. Shares of Samsung Electronics also hit a record closing high of 224,500 won. SK hynix rose to 1.225 million won, another record, overtaking Tencent to rank fourth in Asia by market capitalization.


박종민 기자 blick@donga.com