SK hynix’s operating profit for the first quarter this year is expected to hit 1.36 trillion won ($1.2 billion), up 70.6 percent on-year, Shinhan Investment said Friday.

The brokerage also forecast in its report that the company’s revenue during the three month period could go up 14.2 percent on-year to reach 8.2 trillion won.

The on-year growth was mostly attributed to the increasing price in dynamic random-access memory products, or DRAM products, and the recent turnaround in market conditions for NAND flash memory products.

With an improved global demand for DRAM products for mobile devices and computers, the overall price for DRAM products is likely to rise by around 7 percent in the first quarter, the report added.

As the company’s production of NAND products will increase, its bit growth -- a key barometer for gauging market demand -- for NAND products will rise 5 percent during the same period, it said.

Meanwhile, Shinhan Investment said SK hynix’s operating profit for the entire year could rise to 12.1 trillion, up 141 percent from a year earlier.

By Shim Woo-hyun (ws@heraldcorp.com)