SK Hynix posts record quarterly high of operating profit

South Korea's memory chip giant SK Hynix posted its record quarterly high of operating profit in the fourth quarter of last year at 4 trillion won, which is even higher than 2016’s annual profit (3.2767 trillion won). The company, which renewed its operating profit in every quarter of last year, is projected to continue its winning streak in 2018 as well.

According to tentative calculations of SK Group and industry experts, Hynix recorded sales of some 8.8 trillion won and operating profit of 4.2 trillion won in the last quarter. This is translated into annual sales of 29.9 trillion won and operating profit of 13.5 trillion won, the highest figure the company has ever garnered. SK Hynix will announce its performance next Thursday.

Unlike some projections that the super cycle will end this year, the company anticipates this year’s record to be better than last year. Insiders even believe that Hynix has a fat chance of exceeding 33 trillion won in sales this year.

SK Group Chairman Chey Tae-won has shown very close attachment to this company. Since the presidential pardon in honor of the National Liberation Day in August 2015, he announced his plan to invest 46 trillion won on Hynix and directed last year’s Toshiba deal in Japan and China. “Hynix is a reliable cash cow of SK Group,” said an insider of SK Group. “Chey’s decision of taking over Hynix in 2012 has finally come to fruition after six years.”

Dong-Il Seo dong@donga.com