Kospi-listed firms post record earnings in H1

On the 19th, the KOSPI closed at 2,674.36, down by 22.87 points (0.85%). The KOSDAQ ended at 777.47, down by 8.86 points (1.13%). [Photo by Yonhap]

Kospi-listed companies achieved record earnings in the first half of 2024, boosted by a strong export performance. While Kospi firms saw a recovery in consolidated operating profits to surpass the 100 trillion won ($75.3 billion) mark, Kosdaq-listed companies struggled due to high interest rates and weak domestic demand, leading to a decline in their performance compared to the previous year.

According to the Korea Exchange on Monday, the individual operating profit of 709 Kospi-listed companies with December fiscal year-ends hit an all-time high of 59.23 trillion won for the first half of 2024, or a remarkable 297.29 percent increase compared to a year earlier.

In terms of consolidated figures, 620 listed companies posted a combined operating profit of 102.99 trillion won for the first half of 2024, up 91.43 percent from the previous year and marking a return to the 100 trillion won level. Their combined sales also grew by 4.55 percent, totaling 1,474.48 trillion won.

Kospi-listed companies showed a clear recovery in performance even after removing Samsung Electronics, which accounts for about 9.9 percent of total sales, from the list. Excluding Samsung Electronics, the remaining firms reported individual sales of 678.41 trillion won, up 3.84 percent from the same period in 2023, and operating profits surged 122.08 percent to 50.02 trillion won. Consolidated operating profits also rose 63.72 percent year-on-year to 85.94 trillion won.

Profitability has also improved significantly for listed companies in 2024 to date. The consolidated operating profit margin of Kospi-listed firms jumped to 6.98 percent in the first half, up from 3.81 percent a year ago. Net profit margins nearly doubled, rising from 2.69 percent to 5.34 percent.

By industry, 13 sectors saw growth in operating profits, driven by strong exports in semiconductors and favorable conditions in the electric and gas sectors, which benefited from increased electricity and gas rates. But sectors such as steel and metals, machinery, chemicals, and telecommunications saw declines in operating profits due to weak domestic demand and competition from low-cost Chinese products.