KOSDAQ Listed Companies' Q1 Operating Profit 2.68 Trillion Won... 51% Increase YoY

Exchange Announces 'KOSDAQ December Fiscal Year 2021 Q1 Performance Analysis'
Non-IT Sectors Show More Distinct Improvement Trends

[Asia Economy Reporter Gong Byung-sun] The performance improvement of KOSDAQ companies that began in the second half of last year continued into the first quarter of this year. It was also found that the performance of non-IT sectors improved more significantly than that of IT sectors.

On the 20th, the Korea Exchange announced the "KOSDAQ December Fiscal Year 2021 Business Year First Quarter Performance Analysis." The analysis covered 1,279 companies out of 1,470 December fiscal year companies. The remaining companies were excluded from the analysis due to reasons such as failure to submit reports or reasons for delisting.

The first quarter performance of KOSDAQ companies improved significantly. On a separate basis, sales reached KRW 36.6825 trillion, an increase of 8.38% compared to the same period last year. Operating profit rose 51.03% to KRW 2.6809 trillion. Net profit recorded KRW 3.1628 trillion, up 85.66% year-on-year. The operating profit margin and net profit margin also improved by 2.06 percentage points and 3.59 percentage points, respectively, reaching 7.31% and 8.62%. The debt ratio slightly increased by 1.20 percentage points to 58.92% compared to the end of last year.

On a consolidated basis, the first quarter performance of KOSDAQ companies showed even stronger improvement. The total sales of 1,011 consolidated companies analyzed reached KRW 53.2676 trillion, up 12.34% year-on-year. Operating profit increased by 98.25% to KRW 1.7675 trillion. Net profit surged 238.84% to KRW 2.5293 trillion. The operating profit margin and net profit margin recorded 6.70% and 6.74%, respectively, increasing by 2.90 percentage points and 4.50 percentage points compared to the same period last year. The debt ratio rose by 1.40 percentage points compared to the end of last year.

By industry, non-IT sectors showed relatively better performance. On a separate basis, sales, operating profit, and net profit of 840 non-IT companies increased by 8.10%, 66.73%, and 110.07%, respectively. For 439 IT companies, sales, operating profit, and net profit improved by 8.86%, 32.56%, and 64.05%, respectively. Among non-IT sectors, the top industries in operating profit growth on a separate basis were finance, manufacturing, other services, and transportation. In the IT sector, broadcasting services, semiconductors, software, and internet showed significant increases. Finance, electricity/gas/water, and transportation all improved in sales, operating profit, and net profit compared to the same period last year. Accommodation and food services saw sales increase and both operating and net profits turn positive. Operating profit and net profit in agriculture, forestry, and construction decreased compared to the same period last year.

On a consolidated basis, the performance of non-IT sectors improved even more clearly. Sales, operating profit, and net profit of 641 non-IT companies increased by 11.31%, 143.26%, and 423.36%, respectively. For 370 IT companies, sales, operating profit, and net profit rose by 14.18%, 46.91%, and 124.26%, respectively. Among non-IT sectors, the top industries in operating profit growth were finance, distribution, other services, and manufacturing. In the IT sector, computer services, broadcasting services, and semiconductors led the growth. Sales, operating profit, and net profit of accommodation and food services, finance, and transportation all increased or turned positive compared to the same period last year. Conversely, agriculture, forestry, and fisheries showed declines in sales, operating profit, and net profit.

On a separate basis, out of 1,279 companies, 692 companies continued to maintain profits as in the same period last year, and 201 companies that were in deficit last year turned profitable in the first quarter of this year. Conversely, 261 companies remained in deficit as in the same period last year, and 125 companies shifted from profit to deficit. On a consolidated basis, out of 1,011 companies, 494 maintained profits as in the same period last year, and 191 companies turned from deficit to profit. Meanwhile, 224 companies remained in deficit, and 103 companies shifted from profit to deficit.

The Korea Exchange explained, "Despite COVID-19, the first quarter performance of KOSDAQ December fiscal year companies showed a significant improvement compared to the same period last year," adding, "Although the increase in non-face-to-face activities negatively affected performance, continuous improvement since the second half of last year has spread the base effect to non-IT sectors as well."

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