[Special Stock] SK Hynix Plunges for Second Day Due to 'Earnings Shock'... Down Over 5%

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] SK Hynix has been on a sharp decline for two consecutive days. This is interpreted as the stock price being dragged down after recording an 'earnings shock' in the third quarter of this year.

At 9:49 a.m. on the 28th, SK Hynix was trading at 85,200 KRW on the KOSPI, down 5.33% from the previous trading day.

The day before, SK Hynix also closed sharply down at 90,000 KRW, a 4.15% decrease from the previous day.

On the 26th, SK Hynix announced that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 1.6556 trillion KRW, a 60.3% decrease compared to the same period last year.

This figure is 16.4% below the market forecast of 1.9808 trillion KRW.

Revenue was 10.9829 trillion KRW, down 7.0% year-on-year. Net profit fell 66.7% to 1.0127 trillion KRW.

Compared to the second quarter, which recorded the highest revenue ever at 13.811 trillion KRW, revenue decreased by 20.5%, and operating profit dropped by 60.5%.

SK Hynix expects the supply to continue exceeding demand and announced that it will reduce next year's investment scale by more than 50% compared to this year's investment, which is expected to be in the high 10 trillion KRW range.

Accordingly, securities firms forecast that SK Hynix will turn to a deficit in the fourth quarter of this year and have collectively lowered their target stock prices.

This content was produced with the assistance of AI translation services.