|Bid||85,000.00 x 0|
|Ask||85,100.00 x 0|
|Day's Range||83,400.00 - 85,200.00|
|52 Week Range||56,700.00 - 85,400.00|
|Beta (3Y Monthly)||0.56|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 22, 2020 - Jan 27, 2020|
|Forward Dividend & Yield||1,500.00 (1.80%)|
|1y Target Est||88,271.00|
Oct.23 -- Sanjeev Rana, senior analyst at CLSA, discusses SK Hynix earnings and they mean for the chip sector. He speaks on “Bloomberg Daybreak: Asia.”
South Korean exports in October fell for an 11th consecutive month and by the most in nearly four years as shipments to China kept slowing and computer chip prices plunged, data showed on Friday. South Korea, the first major exporting economy to release monthly foreign trade data, has been struggling especially hard from the prolonged U.S.-China trade war on top of already cooling global demand. Exports dropped for an 11th consecutive month and by 14.7% in October from a year earlier, the data showed, the biggest decline since January 2016 and worse than a 13.8% fall tipped in a Reuters survey.
(Bloomberg) -- Samsung Electronics Co. posted better-than-expected earnings and projected a gradual recovery in the memory chip market in 2020 as fifth-generation wireless technology rolls out globally.Shares in South Korea’s largest company climbed as much as 2% after it posted net income of 6.1 trillion won ($5.2 billion) for the September quarter, surpassing the 5.5 trillion won average of projections. Samsung, which reported a 56% slump in operating profit earlier this month, said it expects memory chip demand to gradually climb out of its funk in the fourth quarter and bounce back next year. The company foresees capital spending of 29 trillion won in 2019, about the same level as it was last year.Memory chip prices have stabilized and risen in part for seasonal reasons and in part because clients are buying to hedge against global macroeconomic uncertainty, said Samsung. Chipmakers such as SK Hynix Inc. have recently said the industry is bottoming out and is now on the verge of an upturn thanks to the adoption of new technologies such as fifth-generation networking.“We are seeing an improvement in the chip industry,” Kim Woon-ho, an analyst at IBK Securities Co., said in an Oct. 22 note. “It is expected that the DRAM prices will start to recover in the third quarter of 2020. We project a big jump in demand for server chips, while Fold models will become a new factor.”What Bloomberg Intelligence SaysSamsung’s semiconductor profit will likely keep falling through early next year, despite optimism surrounding an upturn in the memory cycle.\--Anthea Lai, TMT analyst. Click here for the research.Samsung’s smartphone business, which has weathered a series of setbacks in recent years, remained strong in the quarter, accruing 85 million unit sales in the third quarter. The recent Galaxy Note 10 flagship exceeded the sales of the previous year’s Note in the same period by “double digits,” according to the company, however Samsung is forecasting profitability of its mobile business will decline in the current quarter as it’ll need to ramp up marketing to prop up demand.The troubles faced by rival Huawei Technologies Co. in international markets have helped bolster Samsung’s mobile sales, with Counterpoint Research indicating that Samsung is absorbing Android users in major European countries, South America and the Middle East.Apple Inc.’s in-demand iPhone 11 is revitalizing demand for the Korean company’s most advanced displays. Samsung notes a “sustained drop in average selling price and demand for TV panels,” however its smaller smartphone displays are keeping that division buoyant and the company predicts robust demand as consumers look to upgrade their devices. 5G networking will help drive an upgrade cycle, says Samsung, and the rapid move to 5G in its home market has already contributed to its bottom line.Samsung’s Stock Is Signaling a Bottom for the Global Chip MarketSamsung shares have risen more than 30% this year, while the benchmark KOSPI has inched up 2%.(Updates with details from earnings call from second paragraph.)To contact the reporter on this story: Sohee Kim in Seoul at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad Savov, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The world's second-largest memory chipmaker, SK Hynix Inc , said 5G-enabled smartphones should help lift the global memory market out of the doldrums next year, as its third-quarter profit beat market expectations on Thursday. The South Korean rival to Samsung Electronics Co Ltd cautioned however that it would cut investment "considerably" in 2020 due to uncertainties over memory-chip demand and global trade tensions. Chipmakers have sent mixed signals about the demand outlook, with Taiwan's TSMC offering record investment plans for 2019 and 2020 on strong 5G smartphone sales, while Texas Instruments Inc gave a disappointing revenue forecast citing the U.S.-China trade war.
The world's second-largest memory chipmaker, SK Hynix Inc, said 5G-enabled smartphones should help lift the global memory market out of the doldrums next year, as its third-quarter profit beat market expectations on Thursday. The South Korean rival to Samsung Electronics Co Ltd cautioned however that it would cut investment "considerably" in 2020 due to uncertainties over memory-chip demand and global trade tensions. Chipmakers have sent mixed signals about the demand outlook, with Taiwan's TSMC offering record investment plans for 2019 and 2020 on strong 5G smartphone sales, while Texas Instruments Inc gave a disappointing revenue forecast citing the U.S.-China trade war.
Investing.com - South Korean chip giant SK Hynix Inc (KS:000660)’s share prices rose 2.3% on Thursday in Asia after reporting better-than-expected profit in the third quarter.
South Korea's SK Hynix Inc has started using a high-tech material from a Korean supplier in its chipmaking process, a company official said on Wednesday, shifting away from a Japanese product for the first time. A SK Hynix official said it had selected an unnamed Korean company to supply high-purity hydrogen fluoride (HF), which is used in etching silicon materials and cleaning chips. South Korean chipmakers have been looking for ways to cut their reliance on Japanese materials since Japan imposed curbs on exports of key input products into South Korea in July.
(Bloomberg) -- Micron Technology Inc. gave a disappointing quarterly profit forecast and warned that global trade tensions may prolong a memory-chip industry slump.The company projected adjusted earnings of 46 cents a share, plus or minus 7 cents, in the fiscal first quarter. Analysts estimated 49 cents a share on average, according to data compiled by Bloomberg. Revenue will be $5 billion, plus or minus $200 million, Micron also said. Analysts projected $4.78 billion.The chipmaker’s guidance means sales are on course to decline by more than 20% year-on-year for a fourth consecutive quarter. Micron’s stock fell almost 6% in extended trading following the report. The shares closed at $48.60 in New York trading earlier, leaving them up 53% this year.The Boise, Idaho-based company warned that it’s vulnerable to the U.S.-China trade war and said recent improvements in orders may not be driven by sustainable demand. Micron has been particularly hurt by U.S. export restrictions that limit sales to China’s Huawei Technologies Co.Micron Chief Executive Officer Sanjay Mehrotra said the company has applied for licenses to ship more products to Huawei, but there have been no decisions on those requests yet. If “restrictions against Huawei continue and we are unable to get licenses, we could see a worsening decline in our sales to Huawei over the coming quarters,” he added.Recent increases in chip prices and orders led some analysts to predict that the market for computer memory and flash chips was poised to improve. Others worry that those gains won’t last. South Korea’s Samsung Electronics Co. and SK Hynix Inc., two of the largest memory-chip makers, are suffering from a shortage of materials from Japan. That could limit supply, but some customers have been building inventory to mitigate this risk.“In recent months, we have seen increased demand from customers headquartered in mainland China, some of whom could be making strategic decisions to build higher levels of inventory in the face of increased trade tensions between the U.S. and China, as well as Japan and Korea,” Mehrotra said.The CEO has told investors that Micron will avoid the boom-and-bust cycles that ravaged the memory-chip business in the past. The market is more stable with fewer suppliers and more diversity in customers.In fiscal 2019, Micron made less than half of the record $14 billion profit it achieved in 2018. In 2020, analysts on average estimate net income will slump again to about $3 billion, before increasing again in 2021. The company had an annual loss as recently as 2016.Net income was $561 million, or 49 cents a share, in the fiscal fourth quarter. That was down from $4.33 billion, or $3.56 a share, a year earlier. Revenue came in at $4.87 billion versus $8.44 billion in the same period last year.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Asian countries are looking for catalysts beyond China to drive their economies as the Sino-U.S. trade war forces Chinese demand for their exports to shrink. Luring foreign companies to their shores, finding ways to boost domestic consumption and scouring for alternate export markets are part of that policy mix as China's neighbours cope with flagging demand from the mainland, hitherto a large market for Asia in the regional supply chain. Malaysia set up a panel to fast-track investments to woo businesses, and said it approved more than $500 million in proposals this month.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Japan is delaying the shipment of a key material used in the production of memory chips in South Korea, according to a senior government official in Seoul.The liquid hydrogen fluoride -- a highly purified chemical used to refine chips in production -- has yet to be shipped, even though Japan has approved exports of its gas form, the official said, declining to be identified because the information has not been made officially public. Japan may still green-light shipment because a 90-day window for review hasn’t yet closed, the official added.On July 4, Japan imposed tougher requirements on export to South Korea of three classes of materials used in the production of semiconductors and displays, and the country has since approved shipments covering hydrogen fluoride along with things like photoresists, used for developing advanced chips. The delay in liquid hydrogen fluoride prolongs headaches for Korean companies like Samsung Electronics Co. and SK Hynix Inc., both dependent on a steady supply from Japan.Korea’s semiconductor businesses are said to have sufficient reserves to weather short-term trade limitations. But their long-term health will demand either a restoration of normal trading with Japanese partners or the development of homegrown alternative supplies, such as those LG Display Co. has been working on, according to multiple reports.Read more: Japan-Korea Spat Threatens to Upend Global Technology ChainThe two neighboring countries are embroiled in a series of disputes, mostly rooted in unresolved rancor over Japan’s 1910-45 colonization of the Korean Peninsula. Hostility grew when South Korea chose last month to end a U.S.-backed military information-sharing agreement with Japan.In August, Japan formally removed South Korea from its so-called white list of most trusted trading partners. This month, South Korea also downgraded Japan from its list of fast-track trading destinations while filing a complaint with the World Trade Organization.Japan controls about 80% of the global market for hydrogen fluoride and South Korea buys almost 90% of the material produced by its neighbor, according to a July 29 report from Hana Financial Investment. The trade partnership has been fruitful for both sides, and before Japan intervened with its raised requirements, producers of hydrogen fluoride were able to ship the material to South Korea without restrictions for three years.Semiconductors form a key source of income for South Korean tech champion Samsung and account for about 20% of the country’s exports.\--With assistance from Michelle Seoh.To contact the reporter on this story: Sam Kim in Seoul at email@example.comTo contact the editors responsible for this story: Malcolm Scott at firstname.lastname@example.org, Vlad Savov, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service has assigned a Baa2 rating to the proposed senior unsecured USD notes to be issued by SK Hynix Inc. (Baa2 negative). SK Hynix will use the proceeds from the notes for general corporate purposes, including the repayment of outstanding borrowings and capital expenditures. "SK Hynix's Baa2 rating reflects its strong position as the world's second-largest memory chip producer and the likelihood of support from its largest shareholder, SK Telecom Co., Ltd., in case of need, which results in a one-notch rating uplift from its underlying credit quality," says Sean Hwang, a Moody's Analyst.
(Bloomberg) -- Huawei Technologies Co. on Friday offered the first glimpse of an in-house software that may someday replace Google’s Android, an important step toward reducing its reliance on American technology.“HarmonyOS,” previously code-named “Hongmeng,” is a long-gestating operating system that could soon find its way into smart TVs and lower-end phones. The OS embodies Huawei’s shift toward self-reliance as American sanctions cut it off from vital technology, and escalating U.S.-Chinese tariffs jeopardize a carefully orchestrated global supply chain. Huawei’s efforts actually mirror Apple Inc.’s: to develop vertically-integrated supply and production lines that help reduce exposure to inclement market forces, unreliable suppliers and unpredictable events like international trade disputes.The newly hostile environment is putting to the test not just Apple’s “Designed in California, Assembled in China” slogan, but the overall preparedness of two smartphone-making giants as the decades-old made-in-China model fractures. Here’s a look at how dependent Apple and Huawei are on external suppliers.OS: Apple’s strength has always been the integration of software with hardware, and it has absolute control over iOS. Huawei is trying to do the same with HarmonyOS, but it has everything left to prove, starting today. For the foreseeable future, Huawei remains dependent on Android for its mainstream smartphones, especially outside China. Advantage: Apple.Software ecosystem: The enormous fortress of iTunes, the App Store and a dedicated following of enthusiastic app developers is a huge and profitable edge for Apple’s mobile business. Huawei will need developers to build valuable apps for its ecosystem, which is another major question mark. Advantage: Apple.Processors: Both design their own processors but neither controls their actual production. Instead, they rely on Taiwan Semiconductor Manufacturing Co. to put them together and on SoftBank Group Corp.’s Arm for the licenses they need to design semiconductors. Advantage: Neither.Memory and storage: SK Hynix Inc., Samsung Electronics Co. and Micron Technology Inc. anchor the two smartphone makers’ storage needs. The Korean duo have a significant lead on RAM modules. Neither Apple nor Huawei has the capability to produce their own storage chips, though Huawei recently launched the Nano Memory Card. Advantage: Neither.Display: Samsung is the biggest supplier of the organic light-emitting diode displays that Apple uses for its iPhone X and XS top-tier devices. Others such as Japan Display Inc. and LG Display Co. provide liquid-crystal display panels for the likes of the iPhone XR and earlier models. While Huawei is in much the same boat, it’s increasingly relying on home-team vendor BOE Technology Group Co. for its OLED panels, which are starting to win customers beyond China. In short, neither is capable of doing the manufacturing itself. Advantage: Neither.Modems: Essential to mobile connectivity, modems are only going to become more important with the transition to next-generation 5G technology. Apple recently agreed to buy Intel’s modem division, a step toward designing its own 5G chips. But Huawei is already among the leaders on this front, having announced the Balong 5G01 modem in February. As with processors, neither has its own silicon facilities so they’ll again be reliant on specialist foundries. Advantage: Huawei.Assembly: Apple and Huawei are heavily reliant on assemblers such as Hon Hai Precision Industry Co., also known as Foxconn. Both also tap other Taiwanese contract manufacturers -- such as Pegatron Corp., Compal Electronics Inc. and Quanta Computer Inc. -- to varying degrees, while Huawei also relies on Flex Ltd. But unlike Apple, which decided years to outsource much of its global production in China, Huawei operates a few highly automated lines to make top-tier P series phones. Advantage: Huawei.Others: Apple and Huawei rely on a plethora of companies elsewhere in their smartphone production. U.S. companies Skyworks and Qorvo provide radio-frequency modules to facilitate 3G and LTE communications. Dutch semiconductor company NXP is the go-to supplier of NFC parts required for contactless payments. Sony Corp. is the undisputed leader in camera sensors and modules. And Apple-funded Corning Inc. supplies toughened glass. Advantage: Neither.Apple and Huawei appear to be the brains orchestrating a huge, international body of engineering muscle. They design their own software, processors, modems and phones, but ultimately have to hand those plans off to a legion of transnational suppliers and manufacturers.(Updates with OS’s unveiling from first paragraph.)To contact Bloomberg News staff for this story: Vlad Savov in Tokyo at email@example.com;Gao Yuan in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
South Korean chipmakers are hitting a dead end in their quest to find alternatives for key Japanese materials that have been slapped with export restrictions, raising the prospect of major disruption to their operations in the coming months. Japan is now requiring special approval for sales of three high-tech materials, including two that are critical for chipmaking, to South Korea amid a deepening diplomatic dispute over compensation for forced labour during World War II. "Japan is slowly strangling our neck", one senior official at a major South Korean major chipmaker told Reuters, requesting anonymity due to the sensitivity of the matter.
South Korea called on Thursday for Japan to allow more time for diplomacy as talks on their most serious dispute in years failed to make progress, a day before Japan could remove South Korea from its list of favoured trade partners. South Korea warned that if Japan were to drop it from its so-called white list of countries that enjoy minimum trade restrictions, there could be sweeping repercussions, including damage to bilateral security cooperation.
(Bloomberg) -- Samsung Electronics Co. shares slid after South Korea’s most important company reported sharply lower profit amid global trade tensions and a wireless industry slump.Net income fell 54% from a year earlier to 5.06 trillion won ($4.3 billion) for the three months ended June, the Suwon, South Korea based company said in a statement, while revenue dropped 4% to 56.1 trillion won. Shares slid as much as 3.3%.The world’s largest maker of memory chips and smartphones has been hammered by geopolitical tensions and a wireless slump. The U.S.-China trade war has rattled the global tech-supply chain and weighed down the price of memory chips used in phones and data centers. In addition, Japan restricted the export of materials used in chips and displays to Korea, raising concern over potential disruptions at Samsung and SK Hynix Inc.Samsung had planned to announce its three-year shareholder return policy Wednesday, but put off the announcement until early next year, citing significant new challenges.“Shares are falling as Samsung delays shareholder return plans because of growing external uncertainties,” Greg Roh, senior vice president at Hyundai Motor Securities, said by phone. “As for now, the extent of global cloud customers’ investments and Japan’s export restrictions are important factors for Samsung’s outlook.”Its stock originally traded higher and then dropped lower during an investor call as Samsung said it’s facing uncertainty due to growing macroeconomic issues. Beyond the U.S.-China dispute, Japan may announce further export curbs against South Korea this week.“Even though Japan’s measures do not ban the export of the materials, we are facing difficulties due to the burden of new export approval process and uncertainties that this new process will bring,” Robert Yi, an investor relations executive, said on an earnings call. “We are dedicated to minimizing any negative impact on our manufacturing process.”Samsung did signal optimism about improvements for the memory business -- its most profitable -- for the rest of the year.“In the second half, demand is expected to grow although the company sees volatility in the overall industry due to increased external uncertainties,” Samsung said in a statement Wednesday. The company said memory demand increased in the second quarter as data-center customers resumed purchasing and mobile applications adopted higher-capacity products. The company didn’t commit to cutting capacity saying that expenditure plans for 2020 haven’t been finalized.Samsung had reported preliminary numbers this month that showed operating profit fell more than 50% and its net income did exceed the 4.88 trillion won average of estimates compiled by Bloomberg.Shares have been little changed over the past year, though they’ve gained in recent weeks with hope of a recovery in chip prices and of progress in the U.S.-China trade dispute.Memory chips have been challenging this year. Contract prices for 32-gigabyte DRAM server modules, used to store data on PCs and servers, dropped by 25.1% in the June quarter, according to InSpectrum Tech Inc. Prices for TLC 128 NAND flash memory dropped 11.5%.Demand for DRAM is expected to rise on seasonal factors while servers will benefit as customers adjust inventory levels and resume purchasing, Samsung said in its statement. The NAND market should stabilize from the third quarter, it said.“We will continue to manage line operations flexibly depending on demand changes. Currently, we are not considering any artificial decrease of wafer input,” Chun SeWon, executive vice president of the company’s semiconductor business said during the earnings call.Chipmakers have been predicting a recovery in memory demand this year, but that’s been delayed amid the trade war and slower expansion of data centers. “A demand-driven oversupply in the DRAM market will push pricing down 42.1% in 2019 and the oversupply is expected to extend through the second quarter of 2020,” Gartner Inc. said in a note on July 22.The mobile division of the world’s largest smartphone maker posted a 42% decline in operating income to 1.56 trillion won. Samsung said its profitability eroded because of intensifying competition in low-to-mid range markets, and vowed to launch successfully the Galaxy Note 10 and Galaxy Fold in the second half of this year.Samsung’s display division, which supplies organic light-emitting-diode screens for Apple’s iPhones, posted operating profit of 750 billion won due to a one-time gain and a gradual demand recovery. The consumer electronics unit, which includes TVs and appliances, posted 710 billion won of profit.“There are many negative factors for Samsung, but its display business is improving,” Song Myung-sup, analyst at HI Investment & Securities, said before earnings release. “Samsung might start seeing a windfall from the U.S. ban on Huawei and more display orders from Apple.”(Updates with analyst comment in fifth paragraph.)To contact the reporter on this story: Sohee Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter Elstrom, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's Investors Service has revised SK Hynix Inc.'s rating outlook to negative from stable. At the same time, Moody's has affirmed the company's Baa2 issuer rating. "The negative outlook reflects SK Hynix's declining financial flexibility, as evidenced by a significant increase in net debt during the first half of 2019, and the uncertainty over the company's ability to generate free cash flow through the ongoing industry downturn," says Sean Hwang, a Moody's Analyst.