[Asia Economy Reporter Dongwoo Lee] SK Hynix is expected to surpass the 1 trillion won mark in operating profit for the first time in five quarters in the second quarter of this year, despite the COVID-19 pandemic.
According to financial information provider FnGuide on the 5th, SK Hynix's second-quarter earnings consensus is projected at 8.2405 trillion won in sales and 1.7088 trillion won in operating profit, representing increases of 27.7% and 168% respectively compared to the same period last year.
The spread of COVID-19 has accelerated the non-face-to-face digital society, leading to a surge in demand for DRAM used in servers and PCs required for global data centers, which is analyzed to have positively impacted sales.
According to market research firm DRAMeXchange, the fixed transaction price of DDR4 8-gigabit (Gb) DRAM products, mainly used in PCs, rose about 18% from an average of $2.81 in December last year to $3.31 at the end of last month.
NAND is also expected to reduce losses due to strong SSD demand and cost reduction. The price of NAND flash 128Gb MLC (Multi-Level Cell) products increased by 5.9%, from $4.42 at the end of last year to $4.68 at the end of last month.
Researcher Soobin Lee of Daishin Investment & Securities explained, "From the third quarter, SSD shipments for game consoles are expected," adding, "Cost reduction through process transition is progressing rapidly, which is expected to offset the sluggishness in the DRAM business division."
Researcher Unho Kim of IBK Investment & Securities analyzed, "SK Hynix's second-quarter operating profit will more than double compared to the previous quarter," and "DRAM operating profit margin will improve by 13 percentage points reflecting the rise in average selling price and sales increase, and NAND profitability will improve compared to the first quarter due to increased volume and higher average selling price."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
