Korean listed companies are seeing widespread upward revisions to Q2 operating profit estimates, with 141 out of 219 companies experiencing increases in the recent month according to data from FnGuide released on an unspecified date. The estimate upgrades reflect growing market expectations for fundamentals beyond the semiconductor sector, which dominated trading in the first half of the year. Analysts attribute the revisions to improving export performance and select domestic consumption indicators, as semiconductor stock volatility prompts investors to seek undervalued opportunities in other industries. Lee Kyung-min, a researcher at Daishin Securities, stated that 19 sectors saw month-over-month consensus increases, signaling positive expectations for both export-driven and some domestic demand stocks.
Chemical Sector Leads Q2 Profit Estimate Increases Since Last Month
The chemical sector recorded the largest upward revisions to Q2 profit estimates since last month. Daehan Yuhwa's Q2 operating profit consensus rose 20.1% from 56.2 billion won to 67.5 billion won within the recent month. LG Chem's estimate increased 14.2%, while Lotte Chemical saw an 11.8% upward adjustment. Among the 219 listed companies with Q2 forecasts, 126 experienced operating profit estimate increases over the recent 3 months.
Retail and Securities Companies See Upward Estimate Revisions
The retail sector benefited from increased foreign tourist arrivals due to the weak won and improving consumer sentiment. Shinsegae's Q2 operating profit estimate rose 10.9% from 131.9 billion won to 146.3 billion won. Hyundai Department Store's estimate increased 10.2%, and Lotte Shopping's rose 6.1%. In the securities sector, Mirae Asset Securities and NH Investment & Securities saw operating profit estimates rise 7.0% and 2.3% respectively, driven by surging stock market trading volumes and index gains.
Hanatour and LG Display Face Downward Estimate Adjustments
Some companies experienced downward estimate revisions due to external factors including exchange rate impacts. Hanatour's Q2 operating profit estimate declined 10.5%. LG Display's estimate shifted from an expected operating profit of 1.1 billion won to an operating loss of 82.7 billion won within the recent month.
FAQ
How many Korean listed companies saw Q2 profit estimate increases in the recent month?
141 out of 219 listed companies with Q2 forecasts experienced upward revisions to operating profit estimates in the recent month, representing 64% of the total according to FnGuide data.
Which sector had the largest Q2 profit estimate increases since last month?
The chemical sector recorded the largest upward revisions since last month, with Daehan Yuhwa seeing a 20.1% increase (from 56.2 billion won to 67.5 billion won), LG Chem up 14.2%, and Lotte Chemical up 11.8%.
Which companies experienced downward Q2 profit estimate revisions?
Hanatour's Q2 operating profit estimate declined 10.5%, while LG Display's estimate shifted from an expected 1.1 billion won profit to an 82.7 billion won loss within the recent month.
