SOUTH Korea’s SK Hynix on Wednesday (Apr 27) posted a 116 per cent jump in first-quarter earnings, supported by solid demand from server clients but slightly missing market expectations due to weaker demand for mobile chips.
July 25, 2022
SOUTH Korea’s SK Hynix on Wednesday (Apr 27) posted a 116 per cent jump in first-quarter earnings, supported by solid demand from server clients but slightly missing market expectations due to weaker demand for mobile chips.
The world’s second-biggest memory chipmaker said its operating profit rose to 2.9 trillion won (S$3.2 billion) in the January-March quarter, its highest first-quarter profit since 2018, up from 1.3 trillion won a year earlier.
However, the profit was below analysts’ expected profit of 3.1 trillion won, according to Refinitiv SmartEstimate.
Revenue climbed 43 per cent on-year to 12.2 trillion won.
A disruption at a rival NAND flash chip plant owned by Japan’s Kioxia and Western Digital in February due to contamination of raw materials led to solid shipments and a quarter-on-quarter price rise for NAND flash chips, analysts said.
However, slowing demand for mobile chips due to China’s Covid-19 lockdown and inflationary pressures weighed on earnings.