No. of mid-size companies in 1-trillion-won sales club up 26 in 2022

[Image source: Gettyimagesbank]

More than a dozen mid-size companies listed on the South Korean stock markets newly joined the 1-trillion-won ($762.2 million) sales club last year, with most of them engaged in information technology (IT), automobile and auto parts, and steel industries.

According to an analysis by business data tracker CEO Score on the 2021 and 2022 earnings of 712 listed mid-size companies in Korea, their combined sales stood at 263.9 trillion won last year, up 18.2 percent from a year ago.

The companies posted a combined operating profit of 15.07 trillion won, up 19 percent, during the same period.

The overall robust performance is in contrast to how the country’s 262 large companies saw their combined sales jump 19.2 percent but operating profit fall 24.1 percent.

There were 39 mid-size companies that posted sales of 1 trillion won or more last year, up by 23 from 16 in 2021. Compared with 2021, 26 companies newly joined the 1-trillion-won sales club and three dropped out.

L&F Co., a manufacturer of high-nickel cathode materials for electric vehicle batteries, saw the biggest rise in sales last year from a year ago. The company joined the club after sales increased 2.9 trillion won.

Strong earnings came on growing demand for secondary battery cathode materials on the back of popularity of green vehicles.

DN Automotive logo [Courtesy of DN Automotive]

DN Automotive VMS Ltd., BHflex Co., Sebo Mec, Cowell Fashion Co. and Husteel Co. also saw a boost in sales.

DN Automotive, a manufacturer of anti-vibration parts and storage batteries for cars, saw a rise in sales as it acquired Doosan Machine Tools Co., currently DN Solutions Co., in the first quarter last year.

Three companies - Winia Co., TOP Engineering Co. and KPX Chemical Co. - in the meantime, dropped out from the 1-trillion-won club.

By industry, the IT electrical and electronics sector had the largest sales growth of 8.62 trillion won, followed by automobile and parts, steel, metal and non-metals, petrochemicals, shipbuilding and machinery, and facility sectors.

Operating profit increased significantly particularly in the IT electrical and electronic sector, followed by cars and parts, shipbuilding and machinery, and facility. Operating profit fell in service, retail, and construction sectors.

Wemade Co. saw the largest drop in operating profit. The company recorded an operating profit of 97.4 billion won in 2021 but it swung to a loss of 84.9 billion won last year due to an increase in spending for business expansion.

In the construction and construction materials sector, the operating profit of Sambu Construction Co. fell the most due to rising raw material costs. Sambu Construction logged losses for three consecutive years, including 4.4 billion won in 2021 and 63 billion won in 2022.

In retail, Kyochon F&B Co., the operator of Korea’s popular chicken franchise Kyochon Chicken, saw the largest 78.4 percent decline in operating income.