Wang Jeong-bu

Kweichow Moutai is a high-quality staple with a resilient business model that gives it strong pricing power even in a weak economy. The company controls the supply of its base liquor (moutai spirit) by aging it for 5–10 years, which lets it manage the market supply and support premium pricing. Gross margins are near 90%, net margins high, and about 75% of earnings are paid as dividends, while the strong cash position is maintained. This makes it a defensive, stable-margin play that offers safety when growth stocks fall out of favor.

LG Innotek is a catch-up play to Samsung Electro-Mechanics in the global component rally. Upside from camera module margin improvement (higher ASP due to variable aperture) and substrate expansion (FCBGA). Valuation is still lower than peers, similar to a previous situation where a stock went from 20 to 60 HKD.