


Recently, the rise in earnings per share (EPS) figures in the industrial index indicates marked changes in market dynamics. EPS, one of the key indicators reflecting companies' operational efficiency and pricing power, particularly stands out with a limited number of companies exceeding the 30 level. This situation shows that profitability is confined to these specific companies.
The outstanding companies are observed to be those with scale advantages in the industry, generating foreign currency income, or operating in certain niche areas. The difference between profitability and share price among these companies leads to discussions regarding valuation. High profitability in some stocks signals much greater potential moving forward, independent of prices, while in others, prices largely reflect profitability.
The most important point investors need to examine closely is the sustainability of this high profit. Companies with high earnings per share initially appear to provide a solid balance sheet opportunity; however, a solid balance between cyclical revenue structure and sustainable cash production is crucial. Particularly, the increase in EPS among companies in the aviation and industrial-service sectors clearly demonstrates the impact of operational leverage.
As a result, this situation indicates that profitability in the industrial index is concentrated in certain companies. The biggest question in investors' minds is whether these high profits are a product of a temporary cycle or the result of a permanent business model.
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