📌 Nanya Technology’s Revenue Surges, SK Hynix Profit Forecast Raised
Improving memory market conditions are showing up in Nanya Technology’s revenue and order coverage, while analysts have judged that SK Hynix’s earnings may exceed market expectations. Together, the two point to strengthening demand and earnings expectations, but the evidence differs in nature: the former is reported operating data, while the latter remains a forecast and should not be treated as realized results.
Nanya Technology’s third-quarter revenue was USD 4.18 billion, up 566% year over year and 60% quarter over quarter, reaching 4.9 times the peak of the previous cycle. Long-term agreements cover 50% to 70% of output, with more than 20% covered by three-year contracts. This not only reflects strong demand but also means some capacity has already been locked in ahead of time; actual revenue still depends on the fulfillment of agreements and subsequent operating performance.
Another report says that a Korean analyst who had previously accurately forecast SK Hynix’s earnings expects its operating profit to reach 80.1 trillion won, above the market consensus of 74 trillion won. This offers a clue that earnings expectations may be revised upward, but the forecast itself is not company performance and cannot, on its own, prove that the memory industry’s upswing will continue. The next things to watch are whether the company can deliver the forecast profit and whether demand and contract orders can continue.
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