SK hynix: Fiscal 2Q22 Financial Results

SK hynix Inc. reported revenue of 13.81 trillion won, operating profit of 4.19 trillion won (with operating margin of 30%), and net income of 2.88 trillion (with net income margin 21%) in 2FQ22.

The company achieved record high quarterly sales along with operating profits over 4 trillion won.

This is the first time that the company has posted revenue over 13 trillion won in a single quarter. Previously, the company’s highest quarterly revenues were 12.38 trillion won, recorded in 4FQ21.

“Although DRAM product prices fell during the second quarter, revenue increased as NAND prices rose and overall sales volume increased,” the company said. “Continued rise of the US dollar and the addition of Solidigm’s sales also worked as positive factors for the quarterly revenue.”

In addition, the company recovered an operating profit over 4 trillion won and an operating profit margin of 30% after 2 quarters following the 4FQ21. This is attributable to the improvement in profitability as the yield rate of the 1anm DRAM and 176-layer 4D NAND, has improved.

“It is meaningful to have achieved excellent business performance despite the difficult business environment such as global inflation, prolonged conflicts between Russia and Ukraine, and Covid-19 lockdown in certain regions of China,” the company added.

However, the firm predicted that memory demand would slow in 2H22. This is because shipments of PCs and smartphones that contain memory are expected to become lower than initially predicted. In addition, the demand for server memory supplied to data center customers is also likely to slow as customers will consume their inventories preferentially. However, the company expects that the memory demand for data centers will grow steadily in mid- to long-term.

Regarding the future business plan, SK hynix stated that it would carefully review next year’s investment plan while monitoring product inventory levels in 2H22.

“Although the uncertainty of the business environment has increased recently, we are confident in the long-term growth potential of the memory industry,” said Kevin (Jongwon) Noh, president and CMO. “We will focus on increasing fundamental business competitiveness while flexibly adapting to changes in the business environment.”