SK Hynix has reported record-breaking revenue and operating profit for the third quarter, continuing its trend of unprecedented performance. Despite strong results, the company announced an additional 60 trillion won in shareholder returns, bringing its total annual shareholder return policy to 100 trillion won, in response to challenges in boosting stock prices and addressing concerns over the peak of artificial intelligence (AI) demand.
On October 28, SK Hynix disclosed that its consolidated revenue for the third quarter reached 104.6155 trillion won, with an operating profit of 83.3338 trillion won. These figures represent increases of 327.9% and 632.1%, respectively, compared to the same period last year. The operating profit margin for the third quarter was 79.7%, meaning the company retained approximately 80 won in operating profit for every 100 won in revenue.
Since the second quarter of last year, SK Hynix has achieved record highs in revenue and operating profit for six consecutive quarters, with operating profit increasing approximately 7.3 times over the past year.
The third quarter's revenue surpassed 100 trillion won for the first time on a quarterly basis, exceeding last year's total annual revenue of 97.1467 trillion won. Cumulative operating profit from January to September this year reached 181.4867 trillion won, nearly 3.8 times last year's annual operating profit of 47.2063 trillion won.
The launch of the sixth-generation high-bandwidth memory (HBM) known as HBM4, along with a significant increase in sales of DDR5 for servers, has driven these strong results. Sales of enterprise solid-state drives (eSSD) based on 321-layer NAND flash have also expanded significantly. The surge in AI demand has contributed to rising memory prices, further enhancing profitability.
Market attention is focused on whether this strong performance will continue into next year. During the earnings conference call, SK Hynix explained that AI investments are expanding beyond a few big tech companies to include general businesses and national initiatives. However, the increasing technical complexity of advanced processes and the time required for new factory construction are expected to lead to memory supply shortages until 2030.
As a result, the company plans to expand production capacity and capital investments next year. It aims to increase HBM4 supply while strengthening its focus on high-value products such as server DRAM and high-capacity NAND. SK Hynix also intends to enhance the stability of its performance by expanding long-term supply contracts with major clients.
SK Hynix announced an additional 60 trillion won in shareholder returns, bringing the total to 100 trillion won for the year. The company aims to enhance shareholder value while investing in expanding production capacity and securing technological competitiveness amid the memory boom driven by increased AI investments.
Kwak No-jung, CEO of SK Hynix, stated, "The trust we have built with customers through technological competitiveness is leading to long-term contracts, transforming our business structure into one with visibility on medium- to long-term demand and profit stability. As our business grows and investment returns increase, we will also grow the fruits we share with our shareholders."
* This article has been translated by AI.
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