Shares of SK Hynix closed up more than 6% on record 2021 revenue

2022-05-11 0 By

South Korean memory giant SK Hynix on Monday announced its fiscal year 2021 revenue of 42.998 trillion won, operating profit of 12.410 trillion won and net profit of 9.616 trillion won for the fiscal year ended Dec 31, 2021.Operating margin for fiscal 2021 was 29%, while net margin was 22%.SK Hynix said it recorded its highest annual revenue in 2021 since its establishment, surpassing 2018 when the global semiconductor market was booming.SK Hynix stressed that the demand for contactless IT is still increasing in an uncertain market environment with supply chain pressure.SK Hynix has achieved record sales by securing product supply based on solid technology and quality competitiveness.SK Hynix analyzed that its DRAM business has achieved the highest level of quality competitiveness through its next-generation value-added products such as DDR5 and HBM3, which were developed for the first time by focusing on securing profitability in response to the demand for PCS and servers.The NAND Flash business, which successfully turned profitable in the third quarter of 2021, achieved a volume growth rate well above the market average based on the competitiveness of the 128-layer stack products and also achieved the annual profit target.SK Hynix posted revenue of 12.377 trillion won and operating profit of 4.220 trillion won in the fourth quarter of fiscal 2021.Quarterly sales exceeded 12 trillion won for the first time and operating profit exceeded 4 trillion won for the second consecutive quarter.As for the 2022 market environment, SK Hynix expects supply chain problems to ease in the second half of the year and demand for memory products to increase, so the DRAM business will continue to focus on profitability by flexibly using inventory to reduce market volatility.NAND Flash plans to continue to seek significant growth.By the end of 2021, SK Hynix will complete the first-stage acquisition of Intel’s NAND Flash and SSD business, and establish a new U.S. subsidiary Solidigm SSD business, which is expected to increase SK Hynix’s NAND Flash sales by more than double that of 2021.SK Hynix’s Korean shares closed at 120,500 won, up 7,000 won or 6.17 percent, buoyed by strong results.(Photo by SK Hynix)