Earnings of companies listed on the main board surged in the first half of this year. Samsung Electronics(005930) and SK hynix(000660), buoyed by higher semiconductor prices, led the gains, while profitability improved across listed companies, pushing sales on a consolidation basis past 2,000 trillion won.
According to the Korea Exchange (KRX) on the 19th, among 699 December settlement of account listed corporations on the main board, the first-half sales on a consolidation basis of 634 companies excluding 65 in sectors such as finance came to 2,000 trillion 126.1 billion won, up 28.84% from a year earlier. Operating profit soared 254.15% to 388 trillion 153.2 billion won.
The operating margin was 19.41% and the net margin was 19.33%, up 12.35 percentage points (P) and 13.58 P, respectively, from a year earlier.
Samsung Electronics and SK hynix made significant contributions. The combined sales of the two corporations on a consolidation basis reached 437 trillion 2700 billion won, with operating profit of 244 trillion 8800 billion won. That accounted for 21.86% and 63% of the main board, respectively.
Even excluding the two companies, the improvement in listed companies' results was clear. For December settlement companies excluding Samsung Electronics and SK hynix, first-half sales were 1,562 trillion 858.2 billion won, and operating profit was 143 trillion 275.1 billion won. Those figures rose 15.01% and 75.61%, respectively, from a year earlier.
Corporate health also improved. The first-half debt ratio was 100.81%, down 9.72 percentage points (P) from a year earlier. The debt ratio, calculated by dividing total liabilities by total equity, indicates how much debt has accumulated relative to equity. The number of companies in the black was 519, up 5.36% from 485 a year earlier.
Second-quarter results improved from the first quarter. Sales rose 16.27% from the first quarter, and operating profit increased 48.56%. Operating margin (up 4.69 percentage points) and net margin (up 7.55 percentage points) also increased.
By industry, sales and operating profit increased in electrical/electronics and IT services. Four industries, including construction and telecommunications, saw sales decline, and operating profit fell in six industries, including entertainment/culture and transportation/warehousing.
Financials also posted notable improvements. Among 42 financial companies, operating profit excluding banks rose 36.07% from a year earlier to 41 trillion 195.9 billion won. Net profit increased 32.82% to 31 trillion 948.8 billion won. Both operating profit and net profit saw the highest growth rate in securities at 160%, followed by insurance and financial holding companies.
Growth was steep even on a separate basis excluding subsidiaries' results. For 720 December settlement listed corporations, first-half separate-basis sales rose 34.47% from a year earlier to 1,070 trillion 532.6 billion won. Operating profit climbed 348.85% to 275 trillion 77.2 billion won.
Combined sales of Samsung Electronics and SK hynix were 380 trillion 6400 billion won, with operating profit of 226 trillion 5500 billion won. Excluding the two companies, listed companies posted sales of 689 trillion 897.4 billion won and operating profit of 48 trillion 526.9 billion won, up 6.08% and 11.78%, respectively, from a year earlier.