KOSPI jumps 6.63% to 6,012.44 points on record Hynix results
Key Facts
The KOSPI closed at 6,012.44 points on October 28, up 374.10 points, or 6.63%, reclaiming the 6,000 level at the close for the first time in 10 trading sessions. The jump followed SK hynix's third-quarter results, which included record revenue and a sharp year-on-year increase in operating profit. The company's shares rose 10.89% to 1,487,000 won, while Samsung Electronics gained 9.01% to 242,000 won. SK hynix said higher prices for key products benefited from growing demand for AI memory. Buying extended to major chip stocks, while the index posted its biggest point gain since August 20 and its largest percentage rise since July 31.
SK hynix reported third-quarter revenue of 104.6155 trillion won, operating profit of 83.3338 trillion won and net profit of 39.7756 trillion won, according to preliminary results released by the company. Revenue increased 32% and operating profit 38% from the previous quarter, when the company recorded revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won. The company said revenue topped 100 trillion won for the first time in its history. Year on year, operating profit rose 632%, and the operating margin reached 80% in the third quarter, compared with 47% in the same period of 2025. The figures reflect growth in revenue and operating profit alongside expanding memory demand, while the company said the results remain preliminary and may change before the independent audit is completed.
SK hynix attributed the growth of its business to prices for key products and demand for AI memory, saying DDR5 server sales increased and HBM4 shipments began in earnest. Sales of eSSD units based on 321-layer TLC technology also expanded. The company forecast that HBM4 would surpass HBM3E in shipment volume and revenue during the fourth quarter and become its main product. It also said it plans to raise capacity at its M15X facility to the maximum level by year-end. In the stock market, gains were concentrated in SK hynix and Samsung Electronics shares, as investors continued to bet on memory products tied to AI applications.
Trading flows on October 28 showed net purchases of 815.8 billion won by foreign investors and 960.8 billion won by institutions, against net sales of 1.80 trillion won by retail investors. Local coverage attributed retail selling to profit-taking during the rally. As trading accelerated, the Korea Exchange suspended the effectiveness of programmed buy orders in the main market for 5 minutes. The suspension came after KOSPI 200 futures exceeded the reference price by 5.17% for more than a minute. This was the second consecutive intervention, according to Digital Today, in a session marked by sharp gains and a clear divergence in investor flows.
SK hynix announced a third-quarter cash dividend of 14 trillion won and decided to buy back shares worth 20 trillion won. The company will cancel shares worth 10 trillion won allocated for shareholder returns, while about 10 trillion won of the buyback will go toward employee compensation. The company is also targeting shareholder returns of about 100 trillion won during fiscal 2026, including cash dividends of at least 30 trillion and buybacks and share cancellations totaling at least 60 trillion won. The program puts shareholder returns at the center of the results announcement alongside operating performance. A researcher at Kiwoom Securities said, according to Digital Today, that these returns could improve short-term sentiment and balance supply and demand in the KOSPI market.
SK hynix said it had signed long-term supply agreements with 14 major customers, including global cloud service providers, with the usual contract term being five years. The signed agreements cover more than 50% of its production capacity for 2027 and 2028. The company expects memory demand to continue exceeding supply through 2030, citing the complexity of advanced manufacturing technologies and the time required to build new production facilities. Investors are also looking to the Federal Reserve meeting on October 27 and 28, with the statement and press conference due on October 28; Wall Street expectations had leaned toward interest rates remaining unchanged.