Seven out of 10 KOSPI-listed companies are expected to post higher operating profit in the second quarter of this year compared with a year earlier. In particular, second-quarter operating profit at Samsung Electronics (005930.KS) and SK hynix (000660.KS) is projected to surge 1,769% and 588% respectively from a year earlier, lifting overall KOSPI earnings, analysts said.
According to financial data provider FnGuide on Thursday, of 275 KOSPI-listed companies with earnings estimates, 192 firms (69.8%) are projected to see second-quarter operating profit rise from the same period last year. The combined second-quarter operating profit of these companies is estimated at 213.8878 trillion won, a 249% increase from 61.3023 trillion won a year earlier. By contrast, 55 companies (20.0%) are expected to post lower operating profit, meaning the number of companies with rising profit is about 3.5 times that of those with declining profit.
Among them, operating profit estimates for Samsung Electronics and SK hynix stand at 87.4084 trillion won and 63.3955 trillion won respectively, bringing their combined total to 150.8039 trillion won. This accounts for 70.5% of the total operating profit of the 275 listed companies (213.8878 trillion won). In effect, the earnings improvement of Korean listed companies relies heavily on the semiconductor sector, buoyed by the artificial intelligence (AI) memory boom, and within it especially on Samsung Electronics and SK hynix.
The scale of earnings improvement at Samsung Electronics and SK hynix is also overwhelming. Samsung Electronics' second-quarter operating profit consensus for this year is projected to rise 1,769.3% from the same period last year. SK hynix is projected to increase 588.1% from a year earlier.
By sector, the dominance of semiconductors also stood out. Second-quarter operating profit in the semiconductor and related equipment sector is expected to reach 210.7693 trillion won, up 244% from the same period last year, the highest growth rate among major sectors. Of the 20 companies in the semiconductor and related equipment sector, 14 are expected to post higher operating profit.
This concentration has intensified compared with the first quarter of this year. According to the Korea Exchange, the first-quarter operating profit of 727 analyzed listed companies on a consolidated basis totaled 156.3194 trillion won, up 175.8% from 56.6717 trillion won a year earlier. Of this, the combined operating profit of Samsung Electronics and SK hynix was 83.8613 trillion won, accounting for 53.6%, more than half of all surveyed companies.
Sectors other than semiconductors are also expected to show strong results in the second quarter. In the shipbuilding sector, 9 of the 10 companies with earnings estimates are expected to post higher operating profit and 8 higher net profit. The sector's overall operating profit is projected at 17.5976 trillion won, up 60.9% from last year. This is attributed to expanded orders centered on high-value-added vessels and improved profitability.
Electrical equipment and commercial banks are also expected to deliver solid results. In the electrical equipment sector, 7 of the 8 companies are projected to post higher operating profit, and the sector's overall operating profit is expected to rise 13.5% to 46.59 trillion won. In commercial banking, 7 of the 8 companies are expected to post higher operating profit, with the sector's overall operating profit forecast to rise 13.6% to 24.9743 trillion won.
By contrast, some sectors showed relatively sluggish trends. In machinery, gaming software, and consumer durables, the number of companies with declining operating profit exceeded those with rising profit, or industry recovery is projected to be slow.
