Trader C0bb

$SKHY Q3 2026 Earnings Recap SK hynix delivered another record quarter, beating revenue and operating profit expectations, with operating margins reaching 80%. Strong DRAM and NAND pricing, growing AI infrastructure demand, and HBM4 adoption continue to drive exceptional profitability. Key highlights: 🟢 Revenue: ₩104.6T (+328% YoY, +32% QoQ), beating ₩98.2T consensus. 🟢 Operating profit: ₩83.3T (+632% YoY, +38% QoQ), beating ₩77.0T consensus. 🟢 Operating margin reached 80%, up from 76% last quarter and 47% a year ago. 🟢 HBM4 shipments accelerated. Management expects HBM4 to overtake HBM3E in both volume and revenue during Q4. 🟢 Long-term supply agreements now cover over 50% of planned production capacity for 2027–2028, with contracts signed across 14 major customers, including hyperscalers. 🟢 Management expects memory demand to continue exceeding supply through 2030, citing AI infrastructure expansion, manufacturing complexity and lengthy capacity additions. 🟢 Enterprise SSD demand remains strong, supported by expanding sales of 321-layer NAND products. 🟢 Net cash reached ₩98.7T, with cash increasing and borrowings declining during the quarter. 🟢 Shareholder returns of approximately ₩100T planned for 2026, including at least ₩30T in dividends and ₩60T in buybacks and cancellations. 🔴 Net income declined 58% sequentially to ₩39.8T, despite record operating profitability. Outlook: Management plans to accelerate capacity expansion in 2027, supported by substantial long-term customer commitments. HBM4 adoption, continued DRAM pricing strength and the supply-demand imbalance remain central to the growth outlook. Another exceptionally strong quarter for the memory industry, with improving visibility into demand extending beyond 2027.