, Korea

Korea 2Q12 net profit to sink 17% lower than expected

Telecom, industrial and basic material sectors are foreseen to perform badly in 2Q12, Nomura said.

According to Nomura, 2Q12 net profit is expected to come in 7% below consensus, which has been lowered by 4% in the past one month. Excluding the Big Three (SEC, HMC and KIA), we believe net profits will likely come in 17% lower than the market’s expectation. Moreover, we expect 49% of the companies under our coverage to miss consensus estimates by more than 5%, and 33% to miss by more than 10%.

Here's more from Nomura:

Telecom, industrial, and basic material sectors to disappoint the most For 2Q12F, we expect the Electronics / IT (39% y-y) and Automobile (14% y-y) sectors to report high growth despite slowing global demand. We also expect these sectors to report above-consensus 2Q12F earnings.

On the other hand, we expect the Telecom sector to report the highest % y-y decrease in NP in 2Q12F and to disappoint the market, as election-year policies will likely continue to squeeze the profits of telcos, in our view. Overall, we are cautious on both the industrial (machinery, construction, shipbuilding) and basic material sectors on slowing global macro conditions.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!