KOSPI Q3 Cumulative Operating Profit Up 64%... KOSDAQ Down 6%

Korea Exchange Announces Q3 Earnings Results for KOSPI and KOSDAQ
KOSPI Reports Cumulative Q3 Operating Profit of 155 Trillion KRW on Consolidated Basis
KOSDAQ Sales Increased but Operating and Net Profit Declined

The cumulative performance of KOSPI in the third quarter increased compared to the previous year. On the other hand, KOSDAQ's operating profit slightly decreased.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

On the 18th, the Korea Exchange analyzed the performance of 614 companies (consolidated basis) out of 700 companies with December fiscal year-end in the KOSPI market. The cumulative operating profit for the third quarter was 155.6463 trillion KRW, showing a 64.45% increase compared to the same period last year.

During the same period, net profit increased by 71.21% to 119.1222 trillion KRW. Sales revenue was recorded at 2,214.6098 trillion KRW, up 4.87%. The operating profit margin was 7.03%, and the net profit margin was 5.38%, both significantly higher than the previous year.

Excluding Samsung Electronics, which accounts for about 26.2 trillion KRW in operating profit, sales revenue increased slightly by 3.59%. Operating profit (42.36%) and net profit (52.93%) also rose sharply.

By industry, among the 17 sectors, operating profit increased in 9 sectors including electrical and electronics, and transportation and warehousing. In particular, medical precision and electric gas industries turned to profitability.

The financial sector (41 companies) saw operating profit increase by 11.93% and net profit by 9.43% compared to the previous year. Especially, securities industry operating profit rose by 18.48%, and insurance by 17.02%.

Among the 614 companies analyzed for the cumulative third quarter, 495 companies (80.62%) achieved net profit in the black. This is an increase of 19 companies compared to the previous year (476 companies). The number of companies in deficit was 119 (19.38%).

The consolidated debt ratio of KOSPI-listed companies was 110.83%, down 1.52 percentage points from the end of last year.

In the case of KOSDAQ, the performance of 1,153 companies (consolidated basis) out of 1,296 companies with December fiscal year-end was analyzed. The cumulative operating profit for the third quarter was 7.8777 trillion KRW, down 6.22% compared to the previous year.

Net profit also decreased by 29.29% to 4.3075 trillion KRW. However, sales revenue increased by 4.02% to 198.8416 trillion KRW. The operating profit margin was 3.96%, and the net profit margin was 2.17%, down 0.43 percentage points and 1.02 percentage points respectively compared to the same period last year.

By industry, compared to the same period last year based on the cumulative third quarter, sales revenue increased in 13 sectors including machinery & equipment and other services, while it decreased in 8 sectors. Operating profit increased in 8 sectors such as machinery & equipment and chemicals, but decreased in 13 sectors including entertainment & culture and pharmaceuticals.

Meanwhile, to separately manage high-quality companies in the KOSDAQ market, the KOSDAQ Global Segment, benchmarked against the Nasdaq market's Global Select Segment, saw sales revenue and operating profit of included companies decrease slightly by 6.33% and 1.62% respectively compared to the previous year. The sales revenue operating profit margin was 7.25%, which was 3.70 percentage points higher than the 3.55% margin of non-included companies.

Among the 1,153 companies analyzed for the cumulative third quarter, 669 companies (58.02%) achieved net profit in the black. This is a decrease of 41 companies compared to the previous year (710 companies). The number of companies in deficit was 484 (41.98%).

The consolidated debt ratio of KOSDAQ-listed companies was 107.72%, up 1.90 percentage points from the end of last year.