In This Article:
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Revenues at 17.6391 trillion won, operating profit at 7.4405 trillion won, net profit at 8.1082 trillion won
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Both revenues, operating profit achieve 2nd highest quarterly records and operating margin improves for 8th consecutive quarters
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Company will strive to continue profit-centered growth based on AI memory leadership
SEOUL, South Korea, April 23, 2025 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that it recorded 17.6391 trillion won in revenues, 7.4405 trillion won in operating profit (with an operating margin of 42%), and 8.1082 trillion won in net profit (with a net margin of 46%) in the first quarter this year.
Both revenues and operating profit are the 2nd highest records following last quarter when the company achieved its best quarterly results. Operating margin improved by 1%p compared to the previous quarter to 42%, resulting in 8th consecutive quarterly growth.
SK hynix explained that memory market ramped up faster than expected due to competition to develop AI systems and inventory accumulation demand. The company responded to the demand with an expansion in sales of high value-added products such as 12-layer HBM3E and DDR5.
The company believes the strong financial results despite a low seasonality reflect its outstanding competitiveness compared to the past. The company plans to focus on enhancing the business fundamentals to achieve distinguished financial outcome, even in times of market correction.
Based on the financial result, cash and cash equivalents increased by 0.2 trillion won to 14.3 trillion won at the end of the first quarter, compared to the end of 2024, leading to an improvement in the debt and net debt ratio to 29% and 11%, respectively.
SK hynix will continue to strengthen collaboration with supply chain partners to meet customer needs despite demand fluctuation amid global uncertainties.
Due to the characteristics of the HBM market that supply volume is mutually agreed a year in advance, the company maintains its earlier projection that HBM demand will approximately double compared to the last year. As a result, sales of 12-layer HBM3E are expected to favorably increase to account for over 50% of total HBM3E revenues in the second quarter.
In addition, the company started to supply LPCAMM2[1], high performance memory module for AI PC, to customers in the first quarter and plans to supply SOCAMM[2], a low-power DRAM module for AI servers, when demand ramps up.
| [1] Low-Power Compression Attached Memory Module (LPCAMM2): LPDDR5X-based module solution that provides power efficiency and high performance as well as space savings. It has the performance effect of replacing two existing DDR5 SODIMMs with one LPCAMM2 |
| [2] Small Outline Compression Attached Memory Module (SOCAMM): A low-power DRAM-based memory module for AI server |
For NAND, the company plans to actively respond to demand for high-capacity eSSD, while maintaining profitability-first operation with cautious approach for investment.