Some predict that SK Hynix may outpace

"Operating profit is going to 45 trillion won"... Ready to take off Hynix


Some predict that SK Hynix may outpace Samsung Electronics in terms of operating profit due to increased sales of semiconductor chips. SK Hynix's operating profit this year is ahead of Samsung Electronics' semiconductor division. In addition, the key point of view is whether SK Hynix's operating profit will be able to keep up with Samsung's mobile division profit next year.

According to the securities industry on the 24th, SK Hynix's latest operating profit forecast for next year is between 20 trillion won and 45.4 trillion won. Samsung Electronics is worth between 27.9 trillion won and 49 trillion won. Although no report has been made yet that SK Hynix's operating profit for next year is higher than that of Samsung, if the price of HBM semiconductors rises more than expected at a time when prices of legacy semiconductors are recovering slowly, operating profit may reverse.

The high margin of HBM semiconductor is the basis for SK Hynix to record a high operating profit ratio. SK Hynix's operating profit ratio, which is expected to be 35% this year, is likely to rise up to 46.8% next year. Daol Investment & Securities predicted SK Hynix's sales next year will be 97 trillion won and its operating profit will be 45.4 trillion won, up 45% from this year.

Ko Young-min, a researcher at Daol Investment & Securities, said, "We will maintain a technology gap with latecomers in HBM4, and premium will be highlighted as a representative player in memory benefits due to increased demand for artificial intelligence (AI) next year," adding, "The stock price, which has been pressed so far, will rebound the strongest in the face of a rebound in business conditions in the future." SK Hynix's stock price, which had been close to 200,000 won at the end of October, fell to 176,700 won on the 22nd of this month.

However, the NAND flash industry is a factor that makes SK Hynix's forecast different. Daol Investment & Securities estimated SK Hynix's operating profit to be 45.4 trillion won next year, while iM Investment & Securities forecasted 20 trillion won. Although it has secured stable earnings growth based on solid-state drives (eSSD) for large-capacity companies, which are in demand for AI in NAND flash, it is difficult to completely defend against the impact of sluggish business conditions. "Despite the stabilization of HBM prices, DDR4 and NAND flash prices are expected to plunge from the first quarter of next year," said Song Myung-seop, a researcher at iM Securities. "SK Hynix's performance is also unlikely to escape from adverse effects."

iM Securities predicted that the average unit price of NAND flash memories will fall by 8 percent in the first quarter of next year from the previous quarter. As a result, there is a possibility that the NAND division, which had posted double-digit operating profit margins this year, will return to the red in the second quarter of next year. "The sales price of general-purpose memory will likely fall short of expectations starting in the fourth quarter due to intensifying competition with China's CXMT and JHICC," said Park Yoo-ak, a researcher at Kiwoom Securities.