As first-quarter earnings season passed its midpoint, about one in three companies on South Korea’s main KOSPI board that have reported results posted operating profit at least 10% above market forecasts, data showed. With second-quarter estimates also being revised higher for major firms, expectations are growing that the earnings uptrend will continue.
Yonhap News Agency’s review of Yonhap Infomax data on Saturday showed that, among 197 KOSPI-listed companies covered by forecasts from at least three brokerages over the past three months, 90 had released consolidated results as of April 30.
More than half of those companies — 49, or 55.5% — reported first-quarter operating profit above the average market estimate, or narrowed their losses. Twenty-nine companies delivered an “earnings surprise,” beating forecasts by at least 10%.
By contrast, 41 companies missed estimates, swung to a loss or widened losses. Nineteen of them posted an “earnings shock,” falling short by at least 10%.
Aggregate results also exceeded expectations. Total first-quarter consolidated operating profit for the companies tracked came to 122.4245 trillion won, topping the market estimate of 106.2273 trillion won by more than 16 trillion won.
Semiconductors led the gains. Samsung Electronics posted operating profit of 57.2328 trillion won, 35% above the consensus estimate, helped by rising memory prices and a shift toward higher value-added products. SK hynix reported 37.6103 trillion won, only 2% above consensus.
Construction firms also turned in stronger-than-expected results. Daewoo Engineering & Construction posted operating profit of 255.6 billion won, more than double the market forecast (114%), aided by improved cost ratios and one-off gains. DL E&C reported operating profit of 157.4 billion won, well above the FnGuide consensus, as housing profitability improved. Analysts cited better housing cost ratios and a shift in business mix that pushed gross margin above 20%.
IT components held up as well. Samsung Electro-Mechanics reported operating profit of 280.6 billion won, beating expectations despite reflecting costs that weighed on earnings. The company benefited from stronger demand tied to artificial intelligence, with a higher share of value-added products such as multilayer ceramic capacitors and high-density package substrates (FC-BGA).
Analysts said the earnings-surprise trend could extend into the second quarter as estimates for major companies continue to rise.
Kim Rok-ho, an analyst at Hana Securities, said Samsung Electronics’ second-quarter operating profit could reach about 89 trillion won, citing continued gains in memory prices and steady demand for AI servers and mobile devices. He said most of the profit improvement is expected to come from the memory business.
Samsung Electro-Mechanics is forecast to post second-quarter operating profit of 376.5 billion won, up about 76.8% from a year earlier. Yang Seung-su, an analyst at Meritz Securities, said the company should benefit from higher MLCC shipments, rising utilization rates and continued product-mix improvement driven by AI-related demand.
In construction, analysts said profits may moderate in the second quarter due to a high base in the first quarter, but the broader profitability improvement is expected to hold. Kim Seung-jun, an analyst at Hana Securities, said DL E&C’s second-quarter operating profit is estimated at about 115.5 billion won, but added that stabilizing cost ratios and expanding orders should support improving full-year results.
Refining and chemicals are also drawing attention. Analysts said higher crude prices and product price increases could lift results with a lag, potentially widening the improvement ahead.
Noh Woo-ho, an analyst at Meritz Securities, said attempts to raise prices across product lines amid geopolitical risks should not be seen as one-off moves. He said the rebound in product prices is likely to last longer and spread to other items, with refining and petrochemical companies expected to feel the benefit over time.
* This article has been translated by AI.
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