SK hynix (000660) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was KRW 32.77T, with an operating loss of KRW 7.73T and net loss of KRW 9.14T amid severe memory price declines.

• Q4 revenue reached KRW 11.306T, up 25% QoQ and 47% YoY; operating profit returned to KRW 346B after four consecutive quarterly losses.

Financial highlights

• FY2023 revenue fell 27% YoY from KRW 44.62T; operating results shifted from KRW 6.81T profit in FY2022 to a KRW 7.73T loss in FY2023.

• Q4 revenue was KRW 11.306T, versus KRW 9.066T in Q3 and KRW 7.672T in Q4 2022.

• Q4 gross profit was KRW 2.23T and EBITDA KRW 3.58T, up 133% QoQ and 99% YoY; net loss was KRW 1.379T.

Outlook and guidance

• FY2024 DRAM and NAND demand bit growth forecast at mid-to-high teens YoY.

• Q1 2024 DRAM bit sales expected to decline by a mid-teen percentage QoQ and NAND bit sales to rise by a mid-single-digit percentage, including Solidigm; pricing conditions expected to improve in both.

• FY2024 capex expected to rise YoY by a minimum level, with spending kept prudent and focused on profitability and investment efficiency.