South Korean securities firm KIS released a business outlook report, triggering a major shock in the memory chip sector and causing the "Southern Double Long SK Hynix" ETF in Hong Kong to plunge 47% this week. The report indicates that despite record Q2 profits, SK Hynix cannot capitalize on spot price increases due to pre-locked long-term contracts.
SK Hynix's contract pricing structure limits its ability to capture rising spot market premiums, impacting its near-term revenue upside.