Lee Han-young

Samsung Electronics and SK Hynix remain undervalued despite recent price gains because the market is re-rating them from a PBR (book value) basis to a PER (earnings) basis, driven by long-term supply agreements (LTAs) that make earnings more predictable and sustainable. The speakers argue that earnings quality has structurally improved, justifying a higher multiple. Additionally, massive domestic liquidity (M2 of 4,200 trillion KRW) and inflows from new leveraged ETFs and foreign funds provide strong demand. The only real risk is if profit margins start to decline, which is not visible yet.

Hyundai Motor is experiencing a valuation re-rating as the market increasingly recognizes it as a robotics OEM company. Although earnings growth is not accelerating dramatically, the shift in perception from a traditional auto manufacturer to a robotics play allows for a higher multiple (from ~5-7x to ~12x PER), which drives share price appreciation even with stable EPS. This is part of a broader trend where Korean industrial leaders are being re-rated on new growth narratives.

Samsung Electronics and SK Hynix remain undervalued despite recent price gains because the market is re-rating them from a PBR (book value) basis to a PER (earnings) basis, driven by long-term supply agreements (LTAs) that make earnings more predictable and sustainable. The speakers argue that earnings quality has structurally improved, justifying a higher multiple. Additionally, massive domestic liquidity (M2 of 4,200 trillion KRW) and inflows from new leveraged ETFs and foreign funds provide strong demand. The only real risk is if profit margins start to decline, which is not visible yet.