Jeong Tae-geun

Samsung Electronics and SK Hynix are heavily undervalued on a forward PER basis compared to Micron. Despite recent price gains, their PERs are only 5.2x and 4.4x vs Micron's 10x. DRAM and NAND exports are surging at record levels, earnings forecasts will keep climbing, and the influx of U.S. retail investors via universal accounts is re-rating Korean memory stocks closer to global peers. These stocks have further upside.

Samsung Electronics and SK Hynix are heavily undervalued on a forward PER basis compared to Micron. Despite recent price gains, their PERs are only 5.2x and 4.4x vs Micron's 10x. DRAM and NAND exports are surging at record levels, earnings forecasts will keep climbing, and the influx of U.S. retail investors via universal accounts is re-rating Korean memory stocks closer to global peers. These stocks have further upside.

The KOSPI index is trading at a PER of only 7.3x, below Hong Kong and Taiwan. If the PER re-rates to the Hong Kong level of around 10x, the index would reach 10,000+. This re-rating is supported by potential MSCI developed market inclusion, improved foreign access infrastructure, and strong earnings from semiconductor sector. Investors can participate via index ETFs.

U.S. LNG export terminals in Louisiana need massive expansion, driving orders for LNG carriers. Korean shipbuilders HD Hyundai Heavy Industries and Samsung Heavy Industries are the primary beneficiaries. HD Hyundai Heavy has already broken out from its previous high, and Samsung Heavy's chart is also favorable. This is the first 'daemi investment' theme.

Hotel stocks are the next rotation play after department stores. Foreign inbound tourism is surging due to the weak Korean won, making domestic hotels cheaper for foreign visitors. Seoul hotel occupancy rates are rising above 80%, average daily room rates are climbing past 300,000 KRW, and luxury five-star hotels are fully booked. The trend benefits companies with hotels concentrated in high-occupancy areas like Jung-gu, Jongno-gu, and Gangnam. GSPNL holds Nine Tree hotels in those prime locations, and Seobu T&D covers the Yongsan area, both poised for strong revenue growth.

Hotels are highly profitable right now due to a surge in inbound tourists taking advantage of favorable exchange rates, leading to near-full occupancy even at luxury rates. Companies operating hotels in prime Seoul locations like Jung-gu, Jongno, and Yongsan are prime beneficiaries.

The shift from EV to ESS capex means only battery materials (e.g., cathode) will benefit from existing capacity usage, while equipment stocks will not see new orders. Focus on material names.

Hyundai Motor will be revalued upward when Chinese humanoid robot company Unitree goes public, likely in September or later this year. Unitree is favored by Chinese leadership and its IPO will redirect market attention to Hyundai as a leading robot manufacturer, potentially sparking a second wave in robotics.

LG Electronics is well-positioned in the humanoid robot manufacturing shift because it is the only company with access to both US and Chinese standards, and the robot industry is moving from components to complete assembly. This gives LG a unique competitive edge, and if the company executes quickly, its stock could revalue upward.

U.S. LNG export terminals in Louisiana need massive expansion, driving orders for LNG carriers. Korean shipbuilders HD Hyundai Heavy Industries and Samsung Heavy Industries are the primary beneficiaries. HD Hyundai Heavy has already broken out from its previous high, and Samsung Heavy's chart is also favorable. This is the first 'daemi investment' theme.

Hyosung Heavy Industries and Hyundai Rotem have completed period corrections and broken above their prior highs, making them attractive breakout buys. This timing strategy works when the market is in a strong uptrend.