Analysts predict a fivefold increase in the profit of the manufacturer of memory chips SK Hynix, the company's investment in the semiconductor business of Toshiba has not yet had a direct impact on the financial situation of the South Korean company.
According to a survey of 21 brokerage companies conducted by Yonhap Infomax (the financial arm of the news agency Yonhap), operating income of SK Hynix in July-September 2017 was 3.7 trillion won (3.26 billion dollars) compared to 726 billion won profit a year earlier. In the second quarter of 2017, the indicator was measured at 3.05 trillion won.
Analyst HMC Investment & Securities Noh Geun-chang says that the growth of SK Hynix's revenue is promoted by the importance of mobile RAM chips in the conditions of mass introduction of dual and biometric cameras in smartphones, as well as high-performance semiconductor solutions. In addition, the growing demand for server memory affects, which will lead to a shortage of products until the first half of 2018, the expert believes..
The financial results of SK Hynix in the fourth quarter of 2017 should also be high, thanks to large orders from Apple, according to Hanwha Investment & Securities analyst Lee Soon-hak,.
Meanwhile, experts commented on the participation of SK Hynix in the acquisition of the Toshiba Memory memory unit for 2 trillion yen ($ 18 billion). SK Hynix's investments, as well as the company's rights to the purchased business are unknown.
Analysts believe that the purchase of semiconductor assets of Toshiba has little impact on the financial performance of SK Hynix, but at the same time will play an important role in terms of ensuring the further growth of the company.
"While SK Hynix will not be able to get a big benefit immediately, it's important that Chinese companies are not allowed to participate in the transaction," said researcher Lee Eugene Investment & Securities Lee Seung-woo,.
Other interlocutors of Yonhap Infomax say that investments in Toshiba Memory are important to SK Hynix for deepening cooperation with global technology giants, and the potential benefit of the deal can not be underestimated.
SK Hynix has planned a record capital expenditure for 2017 - at 9.6 trillion won (8.5 billion dollars), whereas before it was expected 7 trillion won. The company invests in the expansion of production capabilities at enterprises producing DRAM and NAND flash.
"We can not meet demand only by changing production technologies, so by the end of the year we are going to expand our capacity to produce DRAM and NAND products," said SK Hynix.