SK hynix (000660) Q4 2024 earnings summary

Executive summary

• Achieved record-high quarterly and annual revenue and operating profit in FY2024, driven by strong AI memory demand, especially HBM and enterprise SSDs, and a high-value product mix.

• Q4 revenue reached KRW 19.77 trillion, up 12% QoQ and 75% YoY; operating profit at KRW 8.08 trillion, up 15% QoQ and 2,236% YoY.

• Net profit for Q4 was KRW 8.01 trillion, with a net margin of 41%.

Financial highlights

• FY2024 revenue totaled KRW 66.2 trillion; operating income/profit was KRW 23.5 trillion.

• Q4 EBITDA was KRW 11.25 trillion (57% margin), up 11% QoQ and 214% YoY.

• Cash and equivalents at Q4-end were KRW 14.16 trillion, up from KRW 10.86 trillion in Q3.

• Annual free cash flow reached KRW 13.9 trillion.

• Q4 non-operating gain of KRW 1.5 trillion included a KRW 0.62 trillion FX gain and KRW 0.87 trillion from partial sale of System IC Wuxi.

Outlook and guidance

• 2025 memory demand outlook is cautious due to inventory adjustments and geopolitical risks, but AI memory demand is expected to drive growth.

• DRAM demand projected to grow by mid- to high teens %, NAND by low teens % in 2025.

• HBM revenue expected to more than double in 2025, with 12-high HBM3E products to comprise over half of HBM3E shipments by mid-year.

• CapEx will increase slightly, focused on HBM and infrastructure, with flexibility to adjust based on market conditions.

• Q1 2025 DRAM sales expected to decrease low teens % QoQ; NAND sales to decrease high teens % QoQ.