Oh Woo-seok

Meritz research argues the 2026-2027 LFP battery bottleneck will come from material supply self-sufficiency, driven by US FEOC and IRA policy and ESS and data center demand. Domestic cell makers are scaling LFP capacity, so Korean cathode suppliers must be used instead of Chinese material. LNF is the top pick because it already supplies LFP material, followed by Pino and Posco Future M, with order momentum expected to continue.

Meritz research argues the 2026-2027 LFP battery bottleneck will come from material supply self-sufficiency, driven by US FEOC and IRA policy and ESS and data center demand. Domestic cell makers are scaling LFP capacity, so Korean cathode suppliers must be used instead of Chinese material. LNF is the top pick because it already supplies LFP material, followed by Pino and Posco Future M, with order momentum expected to continue.

Rising interest rates are improving bank earnings expectations, and Korean bank and financial names such as Shinhan Financial Group and Hana Financial Group hit 52-week highs. The domestic flow summary shows bank stocks gaining as rate-sensitive beneficiaries in the current high-rate environment.

Meritz research argues the 2026-2027 LFP battery bottleneck will come from material supply self-sufficiency, driven by US FEOC and IRA policy and ESS and data center demand. Domestic cell makers are scaling LFP capacity, so Korean cathode suppliers must be used instead of Chinese material. LNF is the top pick because it already supplies LFP material, followed by Pino and Posco Future M, with order momentum expected to continue.

Rising interest rates are improving bank earnings expectations, and Korean bank and financial names such as Shinhan Financial Group and Hana Financial Group hit 52-week highs. The domestic flow summary shows bank stocks gaining as rate-sensitive beneficiaries in the current high-rate environment.

SK Innovation has risen for consecutive sessions after securing a roughly 1.5T won ESS supply contract to the US, showing the AI data center and US grid-scale ESS demand story is translating into direct orders for Korean battery companies. This contract adds specific revenue momentum to the stock.

Samsung Biologics (207940.KS) reported strong Q2 earnings with revenue of 1.3 trillion won and operating profit of 580 billion won, growing 20-30% YoY. Plants 1-4 are fully operational, Plant 5 is starting qualification, and the US Rockville plant acquired in April will begin contributing sales from Q3. The company maintained its 15-20% full-year growth guidance, with the upper end achievable as new capacity ramps up. A Kyobo Securities analyst set a target price of 1,900,000 won based on 2027 EBITDA of 3.4 trillion won and a 24.5x multiple. The stock had underperformed recently but buying interest flowed in as visibility on Q3 and Q4 earnings improved. The company also announced the acquisition of Polypeptide Group to diversify modalities, with ample cash reserves of 2.2 trillion won minimizing funding concerns. Overall, the company is executing well on capacity expansion and pipeline diversification, supporting a bullish fundamental outlook.

On the weekly chart, both Samsung Electronics and SK Hynix broke the Bollinger Band mid-band in the first week of July without a strong recovery the following week. Historically, this pattern leads to a move down to the lower Bollinger band, indicating further short-term downside.

On the weekly chart, both Samsung Electronics and SK Hynix broke the Bollinger Band mid-band in the first week of July without a strong recovery the following week. Historically, this pattern leads to a move down to the lower Bollinger band, indicating further short-term downside.

GigaVis has broken below its Bollinger mid-band on the weekly chart. From a trend perspective, the stock could fall further in the short term, so selling is warranted purely on the chart pattern.

The KOSPI decline was driven by sentiment, not fundamental deterioration; index found support near 6,448 and reclaimed the 5-day moving average. Selling into this bounce should be avoided because the underlying issues are not fundamental, and the market may stabilize.

Korean entertainment stocks are trading at extreme undervaluation – HYBE at 22x, SM, JYP, YG at 12-15x forward P/E – after a 40-50% drop in a few months due to sector rotation away into semiconductors. The analyst community recommends overweight, citing strong Q2 earnings that meet or beat consensus, massive BTS world tour driving record HYBE profits, and fast-growing 5th-gen groups. A rebound in HYBE will lift the entire sector as semis lose momentum.

Korean semiconductor materials stocks have lagged equipment peers and are trading at lower valuations, while the underlying memory capex expansion (NAND upgrades, new fabs) will eventually drive materials demand higher. Stocks like Hansol Chemical, ENF Technology, Solbrain, TCK, and Leeno Industrial offer a catch-up re-rating opportunity, with global number-ones TCK and Leeno particularly well-positioned.

APR Corp continues to deliver strong earnings growth with excellent overseas performance in the US and Europe, while expanding into major retailers like Walmart and Costco. The stock has corrected from ~30x to 24x forward P/E without any fundamental deterioration, making the valuation increasingly attractive, especially if the company again delivers an earnings surprise.

Korean semiconductor materials stocks have lagged equipment peers and are trading at lower valuations, while the underlying memory capex expansion (NAND upgrades, new fabs) will eventually drive materials demand higher. Stocks like Hansol Chemical, ENF Technology, Solbrain, TCK, and Leeno Industrial offer a catch-up re-rating opportunity, with global number-ones TCK and Leeno particularly well-positioned.