South Korean airlines, hospitality and energy firms like their global peers are expected to enjoy a sharp recovery in profit in the second quarter as the world-wide economic reopening has been picking up speed since early this year in line with policy transition to living with Covid-19 as endemic.
According to Seoul-based financial data tracker FnGuide, 232 locally listed firms with more than three earnings estimates for the April-June period are forecast to see their operating profit in the cited quarter rise 6 percent from a year ago with sales up 19 percent.
The earnings rebound will be led by business reopening beneficiaries like airlines and energy firms as many countries around the globe are easing Covid restrictions to handle it as an endemic. Aviation profit is expected to surge by 322 percent on year in the second quarter, followed by hospitality & leisure 296 percent, energy 86 percent, marine shipping 72 percent, and trading 48 percent. Semiconductor and IT sectors are also projected to see an increase of 25.7 percent in operating profit.
As travel demand is likely to explode in the second quarter with the start of the holiday season amid eased social distancing rules, Korean Air is estimated to post an operating profit of 435.3 billion won ($341 million) in the second quarter, up 125 percent from a year ago. Low-cost carriers, such as Jeju Air and T’way Air, also anticipate narrowed losses in the same quarter.
In the hospitality & leisure sector, Kangwon Land, a casino and resort firm located in Gangwon Province, is forecast to earn 54.6 billion won in operating profit, about 20 times higher than 2.7 billion won a year ago.
Energy and trade firms are expected to continue enjoy improvement in earnings thanks to the hikes in commodities prices in recent months. HD Hyundai’s profit is projected to increase by 280 percent on year, and Korea Gas Corp. up 197 percent. Refinery names will see their results grow,…