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SK Hynix Q4 '24 Earnings Highlights;

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🔹 Operating Profit: ₩8.08T (Est. ₩8.03T) 🟢

🔹 Net Income: ₩8.00T (Est. ₩5.91T) 🟢

🔹 Revenue: ₩19.77T (Est. ₩19.77T) 🟡


Outlook:

🔹 1Q 2025 DRAM B/G: Low-teen% decrease QoQ

🔹 1Q 2025 NAND B/G: High-teen% decrease QoQ

🔹 2025 DRAM Market Outlook: Mid-to-high teen% growth

🔹 2025 NAND Market Outlook: Low-teen% growth

🔹 HBM Revenue: Expected to grow over 100% YoY in 2025


Q4 Segments:

🔹 HBM Revenue: Over 40% of total DRAM revenue in Q4, with HBM3E shipments beginning as planned.

🔹 DRAM ASP: Increased +10% QoQ due to a favorable product mix (HBM and DDR5).

🔹 NAND Revenue: Growth driven by enterprise SSD (eSSD) demand, though legacy products like DDR4 saw price declines.


Full-Year 2024 Financial Performance:

🔹 Operating Profit: ₩23.47T; UP +102% YoY

🔹 Revenue: ₩66.19T; UP +102% YoY


Capital Expenditures and Strategic Investments:

🔹 2025 Capex: Significant increase for new FAB infrastructure and HBM production.

🔹 Dividend Plan: Fixed annual dividend to increase by 25% during 2025-2027.

🔹 1Cnm Technology: Production ramp-up of DDR5 and HBM4 products to maintain competitive edge in high-performance DRAM.


Key Strategic Highlights:

🔸 AI-Driven Growth: Strong demand for HBM products driven by AI servers and GPUs like NVIDIA’s Blackwell expected in 2025-2026.

🔸 General DRAM Shift: Reduced DDR4/LPDDR4 production to single-digit revenue share in 2025, focusing on DDR5 and HBM profitability.

🔸 Customer Alignment: Securing long-term agreements for HBM supply and aligning investments with hyperscale customers’ AI priorities.

🔸 China Concerns: Continued market dominance in advanced DRAM and HBM as Chinese manufacturers face challenges in producing high-performance memory products.

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