In This Article:
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Revenue: KRW17.6 trillion, 11% sequential decrease, 42% year-on-year increase.
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Operating Profit: KRW7.44 trillion, second highest following KRW8.08 trillion last quarter.
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Operating Margin: Improved by 1 percentage point sequentially to 42%.
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Depreciation and Amortization: KRW3.33 trillion, slight increase from last quarter.
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EBITDA: KRW10.77 trillion with an EBITDA margin of 61%.
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Net Profit: KRW8.11 trillion with a net profit margin of 46%.
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Cash and Cash Equivalents: KRW14.3 trillion, up KRW0.2 trillion from the previous quarter.
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Interest-bearing Debt: Increased by KRW0.6 trillion to KRW23.3 trillion.
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Net Debt: Increased by KRW5.5 trillion to KRW9 trillion.
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Debt-to-Equity Ratio: Improved slightly to 29%.
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Net Debt-to-Equity Ratio: Improved slightly to 11%.
Release Date: April 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SK Hynix Inc (FRA:HY9H) recorded KRW17.6 trillion in revenue for Q1 2025, marking the second highest quarterly revenue in its history.
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The company achieved a 42% year-on-year increase in revenue, driven by strong sales of high value-added products like HBM3E and DDR5.
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Operating profit for Q1 was KRW7.44 trillion, with an improved operating margin of 42%, demonstrating resilience during market corrections.
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SK Hynix Inc (FRA:HY9H) successfully completed the second closing of the Solidigm acquisition, enhancing its strategic position.
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The company anticipates a low-teen percent sequential increase in DRAM shipments and over 20% growth in NAND shipments in Q2 2025, indicating strong future demand.
Negative Points
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Despite strong performance, SK Hynix Inc (FRA:HY9H) faced an 11% sequential decrease in revenue due to expected seasonal demand weakness.
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NAND shipments declined by high-teens percent compared to the previous quarter, with ASP dropping about 20%, reflecting weaker demand recovery.
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The company faces heightened global uncertainties, such as tariff policies, which increase volatility in demand projections for the second half of the year.
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Interest-bearing debt rose by KRW0.6 trillion to KRW23.3 trillion, and net debt increased by KRW5.5 trillion to KRW9 trillion, impacting financial leverage.
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Tariff-related uncertainties and potential export restrictions pose challenges to SK Hynix Inc (FRA:HY9H)'s supply chain and market demand.
Q & A Highlights
Q: How do you expect memory demand to change this year due to the US tariff policy? A: While there is uncertainty surrounding tariff policies, global customers are maintaining their planned memory demand. Some are even requesting short-term supply pull-ins. For IT consumer goods, tariffs are temporarily on hold, and new AI product launches are anticipated to stimulate demand. The impact on AI servers is expected to be limited.