SK Hynix Co., Ltd announced on the 29th that it has substantially upgraded its operating‑profit outlook for next year based on actual results. The company now projects an operating profit of KRW464 trillion (a 64% increase over last year) due to higher-than-expected demand for high‑performance products such as HBM4 and server DRAM, in addition to the rising prices of memory products. This revision reflects the results from Q3 2023 where sales rose 327.9% YoY and operating profit increased 632.1%.
Researcher Yeongu said that SK Hynix’s Q3 sales this year reached KRW104.6 trillion and operating profit was KRW83.3 trillion, representing a 79.6% increase in net income compared to last year. He explained that the price of memory products had risen by 29% for DRAM and 26% for NAND Flash, recording actual results higher than market averages by 6.5% and 8.2% respectively. The first instance where sales exceeded KRW100 trillion indicates the effect of product price increase even amid supply shortages.
The upward revision is also linked to the share‑repurchase policy. SK Hynix had disclosed a plan to buy back about KRW100 trillion worth of shares this year; in addition to the previous quarter's purchase of KRW40 trillion and cash dividend of KRW30 trillion, it aims to secure assets and cash totaling over KRW60 trillion. The expected share price is estimated at around KRW20 000 per share (basic) and KRW20 000 per share (special), implying about KRW20 000 per share.
The growth momentum seen in quarterly results is tied to the expected demand for HBM4 and server DRAM in Q4. The company expects its HBM4 production to surge through expansion at the Cheongju M15X plant, and with Nvidia's new GPU release, supply of SMC (SOCAMM?) will increase. Accordingly, the price increase rates for memory in Q4 are expected to be 10% for DRAM and 7% for NAND Flash; researcher added that the price volatility seen in Q3 is likely to continue into Q4.
SK Hynix’s financial strategy and share‑repurchase policy are expected to generate positive market response. By providing a basis for results improvement and presenting clear share buyback plans, the company is likely to increase investor confidence and raise valuations such as multiples.