4H·

SK Hynix [ NVDA Supplier ] Q1'25 Earnings Highlights:

$000660


🔹 Revenue: ₩17.64T (Est. ₩17.2T) 🟢; UP +42% YoY

🔹 Operating Profit: ₩7.44T (Est. ₩6.62T) 🟢; UP +158% YoY

🔹 Net Income: ₩8.11T (Est. ₩5.04T) 🟢; UP +323% YoY

🔸 Overtook Samsung to become global No.1 in DRAM revenue and profitability in Q1


Segment & Operational Highlights:

🔹 DRAM Revenue Share: ~80%

🔹 DRAM Profitability Improved QoQ despite seasonal price weakness

🔹 NAND: Maintained profitability despite declining prices and volumes

🔹 Cash & Equivalents: ₩14.3T (UP ₩0.2T QoQ)

🔹 Debt Ratio: 29%, Net Debt Ratio: 11%

🔹 Operating Margin: 42% (vs. 23% YoY); UP +19pp YoY

🔹 Net Margin: 46%


Outlook & Guidance:

🔹 Q2 DRAM Sales: Expected to grow low-teens % QoQ

🔹 Q2 NAND Sales: Expected to grow over 20% QoQ

🔹 Maintains HBM demand projection: To double YoY in FY25

🔹 Capex: Slight increase YoY; remains disciplined and focused on ROI

🔹 eSSD Trend: Shift from 61TB to 122TB; developing 244TB QLC eSSD

🔹 AI-optimized eSSD demand (QLC/TLC) remains strong due to data center needs


Market Position:

🔹 Overtook Samsung to become global No.1 in DRAM revenue and profitability in Q1

🔹 HBM3E 12-layer chips to exceed 50% of HBM3E sales in Q2

🔹 Leading early mass production and customer qualifications for HBM4

🔹 DRAM mix shifting toward DDR5, 24Gb/32Gb chips


Strategic Developments:

🔸 Continued expansion of M15X fab to support AI memory scaling

🔸 AI-driven demand and DeepSeek models supporting long-term HBM growth

🔸 Entered LPCAMM2 production for AI PCs; SOCAMM2 for servers to follow

🔸 Strengthening supply chain collaboration amid global uncertainty

🔸 Proactive response to tariff-driven customer stockpiling; limited inventory concerns


Commentary:

🔸 CFO Kim Woo-hyun: “Tariffs and protectionist measures are making market forecasting increasingly difficult. We remain cautious yet flexible on Capex.”

🔸 “Despite macro volatility, HBM demand remains strong and predictable due to annual supply agreements.”

🔸 “Direct U.S. exports remain low; shipments for American clients are routed globally.”


Competitive Positioning:

🔸 “SK Hynix’s lead in AI memory and customized HBM solutions underpins our #1 position in DRAM.”

🔸 “We aim to maintain profit-led growth by focusing on high-margin, high-performance memory products.”

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