SKH Hynix reported strong earnings today, a good start to the year. Revenue reached 104 trillion won, with an operating profit margin of 80%. The average selling price of DRAM rose nearly 30% quarter-on-quarter, and NAND prices increased by about 25%. Price increases and a higher proportion of high-end products contributed to the profitability. If Samsung and SanDisk follow suit with their earnings reports, a significant market rebound can be expected. The number of long-term contract customers increased from approximately 10 to 14, with typical agreements lasting 5 years and some extensions under negotiation. This covers over 50% of total capacity for 2027-28, maintaining a similar proportion in the medium term. Considering the volume under negotiation, it can even be argued that DRAM and HBM volumes up to 2029 are "effectively sold out." Furthermore, negotiations with major customers regarding HBM volume and pricing for 2027 have been completed. The approximately 100 trillion won shareholder return plan for the year includes the 40 trillion won share buyback announced in August and recently completed. While not a new 100 trillion won buyback today, the figure is still eye-catching enough to generate headlines. Given SanDisk's currently low stock price, Hynix's earnings report is relatively positive. The report shows that NAND pricing remains strong, and enterprise SSD demand is improving the product mix. This alleviates concerns that SanDisk will face a simultaneous weakening of demand across the entire industry and supports its ability to maintain good profitability. In the future, once SanDisk's stock price rebounds to higher levels, Hynix's expansion of high-end NAND and enterprise SSD supply could be interpreted as competitive pressure on SanDisk. This could turn the positive news into a negative one. Key points to watch in SanDisk's upcoming earnings report are: 1. Whether the guidance for the next quarter will continue to rise. 2. Whether the increase in selling price and enterprise SSD growth will be reflected in gross profit and cash flow. 3. Whether the long-term contract pricing mechanism both protects against downward pressure and limits the potential for further price increases. @BITstocks_CN Buy US stocks on BIT, 10,000+ US stocks and ETFs, real holdings, and enjoy dividends.