Cho Hee-jin

Samsung Electronics and SK Hynix are undergoing re-rating growing pains. The previous rally was driven by explosive EPS growth, but as growth slows, further upside requires a multiple expansion (re-rating). This re-rating is challenging because the market previously valued them on PBR, but the speaker sees long-term supply agreements (LTA) for memory and active shareholder returns as valid reasons for a higher multiple. Additionally, demand could extend from B2B to B2G (AI for governments). She believes that after working through this consolidation, stock prices will be much higher than today.

GNC Energy is the dominant provider of emergency generators for domestic data centers, holding a 70% market share overall and 90% in gas turbines. Because these generators are legally mandated and constitute only 1% of total data center capex, clients prioritize GNC's rich track record over price, granting the company strong pricing power and expanding margins. The massive influx of domestic mega data center projects provides clear revenue visibility for the next 2-3 years, though investors should monitor a minor supply chain risk regarding engine sourcing from Japan.

Hyundai Motor is the top pick within the Hyundai Motor Group robotics theme due to its largest direct stake in Boston Dynamics, its position at the top of the governance structure, upcoming hybrid new car momentum in the second half, and a potential re-rating from the robotics segment including Boston Dynamics' Nasdaq listing catalyst and Softbank's stake decision by June.

High Treasury yields are a sign that bond buyers are scarce while the U.S. keeps issuing debt, so the market is focusing on stablecoins. Stablecoin issuers are forced to hold reserves in safe, liquid assets, which effectively means U.S. Treasuries, letting them capture the rate spread. This supports stablecoin ecosystem names; Circle and Coinbase have rebounded from their lows and are worth watching as related companies.

Although SK Hynix contracted HBM prices with Nvidia at a lower-than-expected rate (50% vs 80% expectation), this is a strategic win-win. SK Hynix is providing competitive memory pricing in exchange for priority GPU allocations to support SK Group's broader AI data center ambitions, benefiting affiliates like SK Telecom in the long run despite short-term memory cycle noise.

The KOSDAQ index is currently outperforming the KOSPI as the extreme market concentration in large-cap memory semiconductors eases and liquidity broadens. Within this rotation, the biotech sector is rebounding strongly due to a favorable risk-reward profile after steep declines, combined with expectations for interest rate cuts.

Samsung Electronics and SK Hynix are undergoing re-rating growing pains. The previous rally was driven by explosive EPS growth, but as growth slows, further upside requires a multiple expansion (re-rating). This re-rating is challenging because the market previously valued them on PBR, but the speaker sees long-term supply agreements (LTA) for memory and active shareholder returns as valid reasons for a higher multiple. Additionally, demand could extend from B2B to B2G (AI for governments). She believes that after working through this consolidation, stock prices will be much higher than today.

Hyundai AutoEver is a system integration (SI) company that will benefit from AI infrastructure expansion, with cloud business growing 70% YoY in Q1 and 110% in 2024. It is converting from external ERP to its own SI solution, participates in the Hyundai Group's 6 trillion won AI data center project, and stands to gain from robotics labor substitution: replacing just 1% of production line workers with robots could add 450 billion won in revenue. Despite a high P/E (>50x), the market opportunity is large, free float is small, and Chairman Chung's stake provides downside support.

Hyundai Mobis also participates in the circular shareholding structure and could benefit from governance restructuring. Kia and Hyundai Steel hold stakes in Mobis; as those stakes need to be swapped, a higher share price would facilitate the process, providing potential upside.

Hyundai Glovis directly holds a stake in Boston Dynamics and is central to the expected governance restructuring within Hyundai Motor Group. Chairman Chung Eui-sun's personal 20% stake and the circular ownership structure create a catalyst for share price appreciation as the group reorganizes.

Robotis is a leading actuator maker for humanoid robots with 95% in-house production and a 26-year track record. Its new QDD actuator solves overheating issues common in Chinese competitors and is price-competitive. The company's Uzbekistan data factory opening in H2 for robot behavior data collection, along with a one-time bonus expense that may create a dip buying opportunity, provide strong catalysts.