[Click eStock] SK Hynix Posts Strong Q1 Results, Robust Performance Expected in Q2

On April 25, DS Investment & Securities analyzed that SK Hynix, which posted a surprise strong performance in the first quarter, is expected to continue its robust results in the second quarter. The firm maintained its "Buy" investment rating and a target price of 290,000 won.

SK Hynix announced the previous day that its sales for the first quarter of this year reached 17.6391 trillion won, with an operating profit of 7.4405 trillion won. Sales increased by 41.9% compared to 12.4296 trillion won in the same period last year. Operating profit significantly exceeded DS Investment & Securities' estimate of 6.9 trillion won. Compared to last year, operating profit grew by 157.8%.

Lee Surim, a researcher at DS Investment & Securities, explained, "Despite the seasonal off-peak period, DRAM market conditions improved faster than expected due to an increase in set demand driven by subsidy policies for eco-friendly home appliances, as well as some demand for inventory buildup."

SK Hynix is expected to maintain strong results in the second quarter. DS Investment & Securities estimates SK Hynix's second-quarter sales at 20.1 trillion won and operating profit at 8.9 trillion won.

Lee further stated, "Demand for AI servers remains solid, and we expect some pull-in demand from customers preparing for potential tariffs to continue in the second quarter. NAND prices are also likely to keep rising in the spot market for the time being. The actual change in customer demand due to tariffs is expected to be limited."