(LEAD) SK hynix logs record profit in Q3 on AI chip supercycle

(ATTN: RECASTS headline, lead; ADDS more info throughout, photo, byline)
By Kim Han-joo

SEOUL, Oct. 28 (Yonhap) -- SK hynix Inc. said Wednesday its revenue and operating profit reached record highs in the third quarter, driven by robust demand for high-bandwidth memory (HBM) chips and other memory products.

Operating profit soared 557.2 percent from a year earlier to 83.33 trillion won (US$62.8 billion) in the July-September period, while revenue surged 327.9 percent on-year to 104.61 trillion won, according to the company's regulatory filing.

The company said it had posted record quarterly revenue and operating profit for six consecutive quarters since the second quarter of last year.

Net profit also hit a record 39.77 trillion won, up 215.7 percent from a year earlier.

"Amid market conditions in which prices of key products rose on growing demand for artificial intelligence (AI) memory, the company once again achieved record quarterly revenue and operating profit, driven by its competitiveness in high-value-added products," SK hynix said.

"Building on these favorable conditions, we will accelerate efforts to expand production capacity and strengthen product competitiveness to sustain our current growth momentum," it added.

SK hynix also announced an additional plan to return 60 trillion won to shareholders, following the completion of a 40 trillion-won shareholder return program last week.

The latest announcement follows the company's decision Friday to suspend plans to list its U.S. subsidiary, Solidigm, citing market conditions.

Reports have circulated that Solidigm was considering an initial public offering in the United States as early as next year, potentially valuing the subsidiary at up to $150 billion.

The decision came amid strong shareholder opposition and regulatory scrutiny over concerns that a separate listing could undermine the interests of minority shareholders.

SK hynix shares have faced sharp downward pressure, falling nearly 30 percent over the three months following the announcement of its second-quarter earnings.

(END)