Core Viewpoint - SK Hynix achieved a record operating profit of over 9 trillion KRW in Q2, driven by high margins from HBM products, which accounted for over 40% of total sales and more than half of total operating profit [1][2] Group 1: Financial Performance - SK Hynix's Q2 operating profit reached 9.2 trillion KRW, a year-on-year increase of 68.4%, with sales of 22.2 trillion KRW, up 35.4% [2] - The DRAM segment, including HBM, constituted 77% of the company's total sales, benefiting from a dominant position in the HBM3E market [2] - The company plans to double HBM sales and shipment volumes year-on-year, leveraging the performance and mass production capabilities of HBM3E [2] Group 2: Market Dynamics and Competition - Concerns arise over SK Hynix's reliance on HBM, especially with competitors Micron and Samsung Electronics expanding their HBM production capabilities [1][3] - If HBM prices decline due to increased competition, SK Hynix's growth may be adversely affected, with predictions of a 30% drop in HBM3E prices next year [3][4] - The market may shift from a monopoly to a competitive landscape with three major suppliers, potentially leading to decreased profit margins for HBM products [3][4] Group 3: Future Outlook - SK Hynix is preparing for the launch of HBM4, aiming to maintain its competitive edge despite rising production costs and market changes [3] - The company acknowledges the evolving market dynamics where negotiation power may shift from suppliers to customers, particularly with Nvidia seeking price reductions [4] - Predictions indicate that SK Hynix's market share may peak above 80% in Q4 but could decline to below 60% if competitors aggressively enter the market in the second half of next year [4]