Samsung Electronics, SK Hynix expected to hit record revenues

Samsung Electronics, SK Hynix expected to hit record revenues. November. 27, 2017 08:21. by Ji-Hyun Kim jhk85@donga.com.

On the back of robust growth in the global semiconductor market, combined sales of Samsung Electronics and SK Hynix are expected to break 100 trillion won mark for the first time this year.

IC Insights, a global market research company, projected on Sunday in its latest report that Samsung will record 65.6 billion U.S. dollars in sales while SK Hynix will see 26.2 billion dollars in sales. The combined figure amounts to 91.8 billion dollars, or 100.8 trillion won.

Domestic analysts also forecast that the two Korean chipmakers’ sales are likely to surpass 105 trillion won, without difficulty. Last year, Samsung’s and SK Hynix’s sales in semiconductor reached 51.16 trillion won and 17.19 trillion won, respectively, a total of 68.36 trillion won. This year, the two companies will see a 53.6 percent increase in the combined sales in just one year.

　

Both companies are expected to post an all-time high of 50 trillion won in operating profit. This will also contribute to operating margin as operating margins of Samsung’s semiconductor division and SK Hynix are expected to reach 40 percent this year, from 26.6 percent and 19.1 percent a year earlier, respectively. Samsung’s semiconductor division posted a record high operating margin of 50 percent in the third quarter while SK Hynix recorded 46.1 percent during the same period. Operating margin of over 40 percent is exceptionally high in the manufacturing sector.