South Korean companies with a large proportion of sales to emerging Asia are expected to shine in the stock market this year as their revenue from these markets will grow more than other regions, a report said.
Major listed companies in Korea will see average revenue growth of 2.6% this year, according to a Feb. 23 report from Mirae Asset Securities Co. It compares with the 21% of the last year, which was boosted by inflation-driven price increases and the weaker won against the dollar.
“The overall sales rise and price increases of listed companies will be limited this year,” said Mirae Asset analyst Yoo Myoung-gan in the report.
Investors should pay attention to companies with high proportions of exports to China, India and ASEAN as those nations will see big jumps in gross domestic product (GDP) in 2023, Yoo said.
India and China are expected to show about 7% and 5% growth, respectively. The five founding countries of ASEAN, Indonesia, Malaysia, Thailand, the Philippines and Vietnam, are forecast to achieve around 5%. Compared with the figures, the global GDP growth will remain at 2.4%.
Korean firms in the food, bio, beauty and media industries are forecast to benefit from growth in emerging Asia.
Hanmi Pharmaceutical Co. and cosmetics giant Amorepacific Corp. respectively generated 23.3% and 26.1% of their revenue from China last year. The two companies are each expected to achieve about an 11% revenue increase this year.
Confectionary firm Orion Corp., which made 45.8% of its sales from China last year, is predicted to see a 6.2% revenue jump.
Jeisys Medical Inc., an aesthetic laser equipment maker, had 20.2% of its 2022 sales from India and the five ASEAN countries. The company is forecast to raise revenue by 25.2% this year.
Hugel Inc., the largest botulinum toxin products maker in Korea, generated 10.7% of its sales from India and the ASEAN nations and is anticipated to have 20.5% revenue growth. Multiplex cinema chain CJ CGV Co.’s sales from those regions accounted for 19.5% – its revenue is expected to rise 17.% this year.
Write to Sung-Mi Shim at
smshim@hankyung.com
Jihyun Kim edited this article.
