Exceptional Happening
The total Q4 operating profit of the 153 KOSPI- and KOSDAQ-listed companies whose operating profit estimates have been provided by at least three securities companies is estimated at 33.0508 trillion won (US$29.7 billion).
The total operating profit estimate is 1.1% higher than a month ago and 37.7% higher than a year ago. The 153 companies’ annual operating profit for this year is estimated at 133.2901 trillion won (US$119.9 billion) and this estimate is 0.1% higher than a month ago as well.
This upward adjustment of the profit estimates in December is for the first time in six years. This can be attributed to the excellent performances of IT stocks such as Samsung Electronics and companies in the semiconductor, display, shipbuilding and chemical sectors. Specifically, the Q4 profit estimates regarding the semiconductor and display sectors have increased by as much as 22.7% and 9.5% compared to a month ago, respectively. The estimate of the operating profit of LG Display has increased by no less than 52.4%.
The rate of increase is 3.3% for the shipbuilding sector and 2.0% in the case of the chemical industry. In the former, news about new contracts has led to the positive change. In the latter, an increase in international oil prices based on production cut by oil-producing countries is expected to result in an increase in product prices.