The buildings of South Korea’s major firms in Seoul. (Yonhap)
SEOUL, Oct. 4 (Korea Bizwire) — Major listed firms in South Korea are likely to have racked up decent profits in the third quarter this year, with their operating profit expected to have soared about 20 percent despite the new coronavirus outbreaks, analysts said on Sunday.
The third-quarter operating income of 147 listed firms on the main bourse was estimated at 35.4 trillion won on a consolidated basis, up 19.4 percent from a year ago, according to financial research firm FnGuide.
Their sales are expected to have jumped 12.6 percent, and their net profit is estimated to have risen 54.7 percent, compared to a quarter ago.
The third-quarter performance estimates represent a sharp leap from the 19.2 percent growth in operating profit and 25.2 percent rise in net profit in the April-June period.
“The corporate earnings are on a rebound from the COVID-19 gloom,” said Hyundai Motor Securities analyst Lee Chang-hwan.
“We are positive that the overall economy is playing up to the second-half recovery scenario,” he added.
Brokerages expected a jump in operating profit for chipmakers, automakers and battery makers. Contact-free businesses, such as internet and mobile platform service providers and biopharmaceuticals, were also set to log decent profits, they said.
However, hotels, leisure industries and airline companies are expected to continue facing slumps due to virus fears, along with travel agencies and department stores.
(Yonhap)
