Among 232 companies with third-quarter estimates from at least three brokerages, 127, or 55 percent, had their operating-profit forecasts raised as of Sept. 21, while estimates for 105 companies were lowered.
Combined operating-profit estimates for the companies increased 4 percent over three months to 257.8 trillion won ($187.5 billion).
Samsung Electronics' third-quarter operating-profit estimate rose 5 percent over the period, while the forecast for SK hynix increased 2 percent.
The revisions followed record second-quarter earnings at both memory-chip makers as demand linked to artificial intelligence infrastructure remained strong.
Samsung Electronics reported record quarterly operating profit in the second quarter, supported by strong DRAM and NAND sales and growing demand for AI server products.
Forecast changes were considerably larger at some smaller and mid-sized companies.
Samsung SDI recorded the largest upward revision, with its third-quarter operating-profit estimate rising more than eightfold from three months earlier, according to the FnGuide data.
Com2uS followed with a 382 percent increase, while estimates for SK Innovation, HMM and S-Oil also more than doubled or nearly doubled.
Downward revisions were led by Intekplus, whose third-quarter operating-profit estimate fell 95 percent over the period.
LG Chem's estimate dropped 63 percent, followed by Mirae Asset Securities at 56 percent and HanaTour at 42 percent.
Among major companies, Hyundai Motor's operating-profit estimate was cut 5 percent, while LG Energy Solution and Samsung Biologics saw reductions of 34 percent and 6 percent, respectively.
The broader earnings revisions came despite a sharp appreciation of the won during the third quarter.
The average won-dollar exchange rate stood at about 1,422 won in the third quarter, down 5.4 percent from the previous quarter, according to a Sept. 21 report by Yuanta Securities.
KOSPI sales and operating-profit estimates nevertheless remained above their end-June levels, the report said.
"The key variable for the third-quarter earnings season is individual industry conditions, not the exchange rate," Shin Hyun-yong, a quant analyst at Yuanta Securities, wrote in the report.
Shin said periods of rapid earnings growth have previously coincided with a stronger won, cautioning against treating currency appreciation as a uniform drag on corporate profits.
He also noted that companies whose earnings estimates are revised higher before results are announced have historically shown a greater likelihood of reporting earnings above market expectations.
AJP Takeaways
- South Korean listed companies saw combined third-quarter operating-profit estimates rise 4 percent over three months, with 127 of 232 covered firms receiving upward revisions.
- Samsung Electronics and SK hynix had their third-quarter operating-profit forecasts raised 5 percent and 2 percent, respectively, helping lift the aggregate estimate despite cuts at 45 percent of covered companies.
- Yuanta Securities said KOSPI earnings estimates remained above end-June levels even as the third-quarter average won-dollar exchange rate fell 5.4 percent from the previous quarter.
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