Operating profit of South Korea's major listed companies is expected to hit a record high in the third quarter on stellar performances by chipmakers and other tech firms, a poll showed Thursday.
Local brokerages forecast the combined operating profit of 142 leading companies listed on the KOSPI market to reach 45.7 trillion won (US$40.5 billion) for the July-September period, according to the survey by market researcher FnGuide.
The profit outlook is up a whopping 48 percent from a year earlier and 12 percent from three months earlier.
The figure covers companies for which more than three securities firms have released earnings outlooks. The businesses close their books in December, with their market value accounting for some 77 percent of the total market capitalization.
"Listed companies will likely register record operating profits for the third quarter should their results be in line with market expectations," said Ahn Hyuck, a senior analyst at Korea Investment & Securities Co. "Their quarterly earnings, which had been on the mend since 2015, hit an all-time high three months earlier."
Market watchers said listed firms' brisk third-quarter earnings will be driven by the surging information and technology (IT) sector.
Bolstered by a boom in the global chip industry, the third-quarter operating profit of semiconductor giant SK hynix Inc. is projected to spike 423 percent on-year.
Tech titan and top-cap Samsung Electronics Co. is predicted to see its operating profit shoot up 174 percent in the third quarter from a year earlier, with that of display giant LG Display Co. expected to soar 109 percent.
"The IT and chip sectors have been on a roll this year," said Kim Hyong-ryul, a Kyobo Securities analyst. "Chip exports are likely to reach about $25 billion for the third quarter, compared with $22 billion the previous quarter."
Oil refiners, chemicals manufacturers and financial groups are also projected to enjoy sharp increases in third-quarter operating profit.
In contrast, operating profits of China-focused companies, including No. 2 automaker Kia Motors Corp. and top cosmetics maker Amore Pacific Co., are feared to tumble due to China's retaliation against South Korea over the deployment of a U.S. missile defense system here.
The operating profit of Kia is forecast to plunge 88 percent on-year for the third quarter, with that of Amore Pacific likely to sink 22 percent, according to FnGuide.