SK Hynix closed at 1.55 million won on the 28th, marking a 14.65% decline from the previous day and a 46.9% drop from its peak of 2.919 million won recorded on the 22nd of last month. The company is scheduled to announce its second-quarter earnings results and hold a conference call on the morning of the 29th. The sharp decline was triggered by investor concerns about whether hyperscalers like Microsoft and Alphabet can sustain massive artificial intelligence investments, and fears that CXMT's listing on the Chinese mainland exchange on the 27th could expand production capacity and drive down memory prices. The securities industry notes that the recent semiconductor sector plunge appears excessive compared to the fundamentals of Samsung Electronics and SK Hynix, with SK Hynix's Q2 operating profit consensus at 63.9868 trillion won.
SK Hynix Announces Q2 Earnings on the 29th Morning
According to the financial investment industry, SK Hynix will announce its second-quarter business results and conduct a conference call on the morning of the 29th. Financial information company FnGuide's compiled consensus for SK Hynix's Q2 operating profit stands at 63.9868 trillion won, with annual operating profit forecast to exceed 260 trillion won.
The earnings announcement and conference call are considered key events that will determine the short-term direction of the stock price, following the recent month-long decline that cut the stock value in half. The conference call is expected to cover long-term supply agreements (LTA) with major customers, next-generation memory development status, and outlook on the memory market.
Analysts Highlight LTA Contracts and Shareholder Return Policies
Son In-jun, a researcher at Eugene Investment & Securities, stated that "binding LTAs are expanding, increasing long-term earnings visibility." He explained that "recently discussed LTAs are evolving to specify minimum purchase volumes and pricing structures, and strengthen partnerships across AI infrastructure businesses including data centers. This change can lower both profit volatility and valuation discount factors for memory companies."
Son added that "there is a high possibility that additional shareholder return policies will be announced in the fourth quarter," noting that "if dividend expansion, treasury stock buyback and retirement proceed alongside detailed LTA announcements, it could provide the market with confidence in long-term earnings stability and lead to structural valuation re-rating."
Yang Il-woo, a researcher at Samsung Securities, stated that "the current adjustment phase is a process of resolving the concentration of profits and market capitalization in the semiconductor sector, and although it may take time, the stock market will rebound." He estimated that "Korea's semiconductor sector's expected surplus cash flow for the single year of 2026 is approximately $294 billion, which is about 10% of Microsoft's market cap of $2.9 trillion."
FAQ
What was SK Hynix's closing price on the 28th?
SK Hynix closed at 1.55 million won on the 28th, down 14.65% from the previous day and 46.9% below its peak of 2.919 million won recorded on the 22nd of last month.
When will SK Hynix announce its Q2 earnings results?
SK Hynix is scheduled to announce its second-quarter earnings results and hold a conference call on the morning of the 29th. The Q2 operating profit consensus compiled by FnGuide is 63.9868 trillion won.
What topics are expected to be covered in SK Hynix's conference call?
The conference call is expected to cover long-term supply agreements (LTA) with major customers, next-generation memory development status, and the company's outlook on the memory market, according to the securities industry.
