SK Hynix (000660 KS) Q3 (KRW) net 39.5tln (exp. 55.4tln), oper. profit 83.3tln (exp. 76.7tln), rev. 104.6tln (exp. 98.3tln)

To proceed with shareholder return of about KRW 100tln in 2026. Offers cash dividend of more than KRW 30tln. Decided a KRW 20tln share buyback. Offers Q3 quarterly dividend of KRW 20,000/shr. Q3 dividend includes a special payout of KRW 10,000/shr related to its Kioxia investment. Q3 DRAM average selling prices increased by high 20% Q/Q. Q3 NAND average selling prices climbed by mid 20% Q/Q. Expects DRAM market demand to increase by mid 20% Y/Y in 2027. Forecasts NAND market demand growth of high teens Y/Y in 2027. PC and smartphone shipments are expected to fall amid cost pressures from higher memory prices and supply shortages. Rising AI infrastructure demand is expected to more than offset this weakness, supporting continued growth in the overall memory market. Memory demand is expected to surpass previous forecasts as AI handles longer and more complex tasks, driving increased computing and data processing requirements. Enterprise and personal AI are expected to support near-term growth, while physical AI expands demand over the medium to long term. Q4 DRAM shipments are expected to increase by mid 20% Q/Q. Q4 NAND shipments are projected to rise by mid-single digits Q/Q. HBM4 is expected to overtake HBM3 in both HBM shipment and revenue shares during Q4. Concluded 2027 HBM negotiations; profitability gap with conventional DRAM is expected to narrow considerably. Entered into long-term agreements (LTAs) with 14 major customers, including leading global cloud service providers. LTAs typically carry five-year terms, with extensions being discussed with certain customers. Implemented safeguards to ensure LTA contract fulfilment, including customer deposits. Secured LTA volumes representing over 50% of total capacity for 2027 and 2028. Anticipates a significant increase in 2027 capex compared with 2026.