It was reported that leadership in the Korean stock market could shift from semiconductors to other sectors. Corporate profits are expected to grow again next year, but the growth rate is likely to slow, putting growth sectors such as rechargeable batteries in focus.
Corporate profits are expected to increase next year, but the rate of profit growth itself is highly likely to slow, and an analysis indicated that share prices may be more sensitive to the level of the growth rate.
Lee Jaeman, a researcher at Hana Securities, pointed out that when profit growth is slowing, the growth rate rather than the absolute size of profits may become a determining factor for price-to-earnings ratios.
Samsung Electronics' third-quarter operating profit was ₩107 trillion, exceeding market expectations, and fourth-quarter operating profit is also expected to reach ₩116 trillion. However, the share-price reaction is expected to depend on the size of any additional upward revision.
In a similar trend, rechargeable batteries and other sectors outside semiconductors, as well as IT hardware, media and steel, are cited as sectors with high profit growth rates in 2027, suggesting a shift in the leading sectors.