You Can See Leading Stocks by Looking at Market Capitalization

Kakao's Unstoppable Rise with Improved Earnings and Subsidiary Value Recaptures 5th Place
POSCO Leads with Strong Earnings, Closely Chasing Kia at 10th
Automobile Stocks Weaken Together Amid Vehicle Semiconductor Supply Disruptions

[Asia Economy Reporter Song Hwajeong] Recently, as the stock market has shown strength, changes in the rankings of top market capitalization stocks have emerged. Along with shifts in market cap rankings, leading stocks are standing out. Stocks climbing the ranks are leading the upward trend, while those falling behind are lagging, unable to ride the bullish wave.

According to the Korea Exchange on the 28th, Kakao reclaimed the 5th position in market capitalization the previous day. After its stock split and relisting on the 15th, Kakao had risen to 5th place but dropped back to 6th the following day. After surging on the relisting day and then taking a breather, Kakao has recently resumed its upward momentum. Improved earnings and subsidiary listing momentum are driving the stock price higher. According to financial information provider FnGuide, Kakao's consensus forecast for Q1 this year projects revenue of 1.2426 trillion KRW, a 43.09% increase year-on-year, and operating profit of 153.8 billion KRW, up 74.38%. SK Securities analyst Choi Gwansoon said, "Despite Q1 being a traditional off-season for advertising, high growth is expected to continue across all sectors following last year," adding, "Operating margin is forecasted at 12.3%, with profitability improvements continuing for nine consecutive quarters." Following Kakao Bank, Kakao Pay recently submitted a preliminary listing review application, initiating its IPO process. Analyst Choi explained, "Kakao Entertainment is also being considered for listing not only domestically but in the U.S., highlighting the growing value of Kakao's key subsidiaries," adding, "This is the point where the value of subsidiaries preparing for listing is maximized."

POSCO, buoyed by improved earnings, is on the verge of entering the top 10. With strong Q1 results and recent consecutive gains, the gap with 10th-ranked Kia narrowed to about 280 billion KRW based on the previous day's closing price. Just a week ago, the market cap difference between the two was about 4 trillion KRW. POSCO has risen for four consecutive trading days, reaching an intraday high of 383,000 KRW yesterday, setting a new 52-week high. POSCO recorded Q1 sales of 16.0687 trillion KRW, a 10.5% increase year-on-year, and operating profit of 1.5524 trillion KRW, up 120.1%. This is the highest quarterly figure since Q2 2011 in 10 years. NH Investment & Securities analyst Byun Jongman said, "POSCO's Q1 results exceeded market expectations thanks to rising steel prices, and profit growth is expected to continue in Q2 with rising average selling prices (ASP)." NH Investment & Securities has raised POSCO's EPS forecasts for this year and next by 26.3% and 40.6%, respectively.

On the other hand, automobile stocks are collectively weak. Concerns over the supply of automotive semiconductors are negatively impacting stock prices. Hyundai Motor, which was ranked 6th earlier this month, has fallen to 8th, and Kia is being chased by POSCO. Hyundai Mobis, which was ahead of POSCO earlier this month, has ceded the 11th spot to POSCO. Besides semiconductor supply concerns, Kia and Hyundai Mobis's Q1 earnings fell short of market expectations. Samsung Securities analyst Lim Eunyeong said, "After the Apple Car issue subsided, the market is looking for momentum such as surprise earnings and strong Genesis sales in the U.S. market to match the elevated stock prices," adding, "Investors are expected to maintain a wait-and-see stance until production and sales are confirmed in April and May." Shinhan Financial Investment analyst Jung Yongjin said, "There are significant concerns about Q2 earnings in the finished car industry," adding, "The shortage of automotive semiconductors intensified from February, leading to a sustained global production cut system. Hyundai Motor Group is also expected to face inevitable volume reductions in Q2."

This content was produced with the assistance of AI translation services.