The operating profit of listed Korean companies is expected to rise to 39 percent next year. The gradual improvement in fundamentals is expected to have a positive impact on the local stock market, which is enjoying its highest price.
According to financial information provider FnGuide on the 11th, the operating profit forecast for 175 listed companies in Korea for next year, which is estimated by three or more securities firms, is estimated at 171.7695 trillion won, up 39.4 percent from this year-on-year.
The operating profit forecast of listed companies, which are aggregated by securities companies, is continuously increasing. Its operating profit forecast continued to increase from 165 trillion won (33.7 percent) three months ago to 170 trillion won (38.3 percent) a month ago.
It is predicted that listed companies other than semiconductors will also see an increase in operating profit this year due to the base effect of improved operating profit in the wake of the new coronavirus infection.
In particular, 19 out of 175 listed companies are expected to more than double their operating profits next year. Hyosung Advanced Materials (782.5%), SK (601.4%), Hyundai Steel (381.6%), and Korean Air (330.5%) are expected to increase their operating profits more than four times.
In addition, 10 companies are expected to succeed in earnings turnaround. Oil refineries such as SK Innovation and S-Oil, theater industries such as CJ CGV and J-Continuity, and casino companies such as Kangwon Land and GKL are expected to turn to the black.
Analysts say it will also have a positive impact on the local stock market, which has been hitting new highs one after another. The KOSPI broke its record high six times this month based on the closing price. The market’s highest price reached the 2,780-point mark.
Although there were concerns that there could be adjustments due to lack of support for its performance, 안전공원 it is expected that it will reduce the burden of valuation as operating profit will continue to improve its operating profit.