SK Hynix recorded favorable performance in the second quarter due to vitalization of non-face-to-face economy and increase in DRAM prices.
SK Hynix made an announcement on July 23 that it made 1.9467 trillion won ($1.62 billion) in operating profit and 8.6065 trillion won ($7.2 billion) in sales in the second quarter of this year.
The figures are up 205.3 percent and 33.4 percent, respectively, from the same period last year. Net profit rose 135.4 percent to 1.2642 trillion won. SK Hynix's second-quarter performance is slightly higher than its stock market estimate (consensus), which was expected to be around 1.8 trillion won in operating profit and 8.3 trillion won in sales.
Sales rose 19.5 percent quarter-on-quarter and 33.4 percent year-on-year. Operating profit rose 143.2 percent quarter-on-quarter, or 205.3 percent year-on-year.
Although uncertainty will continue in the second half of this year, SK Hynix expects that demands for 5G smartphones will increase along with partial economic activity of major countries and that demands will improve in game consoles where new products are scheduled to be released.
Mobile customers’ sluggish demand for DRAMs continued. But, it has increased sales of servers and graphics products, which were relatively strong in demand and prices. Compared to the previous year, shipments increased by 2% and average selling price (ASP) rose by 15%.
Uncertainty over the business environment in the second half of the year is expected to remain due to the global trade dispute and COVID-19.
SK Hynix is planning to operate its products focusing on profitability based on competitive edge in quality. Facility investment and production capacity (CAPA) operations will maintain a conservative stance as previously planned.
It is planning to expand sales of 10-nano second-generation (1Y) mobile DRAMs. It is also planning to supply LPDDR5 products in a timely manner, which are beginning to be hired in earnest. It is going to expand sales of high-capacity server products with 64 gigabytes or more and mass-produce 10-nano 3rd generation (1Z) products in earnest.
