Park Se-ik

Samsung Electronics is deeply undervalued on both P/B and P/E relative to its memory cycle peak. A potential recovery in foundry market share, even a few percentage points, could add ~400 trillion won in market cap based on TSMC's valuation. The company also benefits from prolonged memory tightness.

The KOSPI index is undervalued because corporate earnings have grown faster than the index rise, resulting in a forward P/E of 8.1x, which is low compared to global peers. Analysts see further upside to 8700, and the market remains cheap despite the rally.

If semiconductor stocks correct 20% around June, it is a buying opportunity because historical patterns show double/triple tops before a final peak, indicating the cycle still has room to run. The host mentions Samsung Electronics and SK Hynix specifically.

Samsung Electro-Mechanics is entering a stronger substrate (FC-BGA) cycle than five years ago, driven by AI-chip package area expansion, MLCC operation at 95% with declining inventory, and price increases that are still early. 2027/28 EPS estimates are likely to be revised up; target price 1.5M KRW based on 47x 2028 earnings.

Samyang Foods has a powerful global brand (Buldak noodles), expanding capacity at Miryang and China plants, and strong export growth. Revenue is projected to increase from 1.7tn to 3.5tn. At 17x forward earnings, valuation is cheap relative to growth. The speaker believes the stock is undervalued and offers long-term compounding opportunity similar to global consumer staples.

Naver is transforming from a domestic platform with a solid cash cow into an AI infrastructure play. The company announced a multi-phase AI factory buildout starting with 200 MW by 2028, aiming for 1.1 GW total. At a market valuation of ~20 trillion KRW per 1 GW, this implies over 20 trillion KRW of hidden value on top of its current ~43 trillion KRW market cap. Combined with the existing earning power, the CEO sees a path to 80-100 trillion KRW market cap within 5 years, making Naver a long-term compounder.

When the US 10-year Treasury yield breaks below 4.4%, it will be a signal to buy US equities, especially the semiconductor index. The current correction is driven by rising yields, not fundamental deterioration, so once yields stabilize and decline, the equity market will rebound. This is a conditional buying opportunity.

Broadcom is a leader in custom AI chips (ASICs) for hyperscalers like Apple and Google, and also offers a high dividend yield (> $20/share annually), combining growth and income in a rare AI stock.

HYBE (352820.KS) retains strong competitive advantages through BTS's continued influence and proven ability to launch new successful idol groups like NewJeans. If the stock falls 40-50% from its highs, it becomes price-attractive. Investors with patience and a target return can buy at such drawdowns.

LG Innotek (011070.KS) will benefit from the same AI substrate shortage as Samsung Electro-Mechanics, with potential for ASP increases of 50-150% in substrates. Despite lower margins, the earnings leverage is substantial, and the stock has significant upside if past cycle patterns repeat.

HD Hyundai Heavy Industries (009540.KS) benefits from growing demand for data-center gas engines (30%+ margins) and its unique ability to produce SMR reactor pressure vessels. Engine capacity expansion is easy, and contracts are already emerging. The stock is still attractively valued for long-term investment despite recent gains.

Korean battery cell makers (LG Energy Solution, Samsung SDI, SK Innovation) have stabilizing earnings, with LG expected to turn profitable in Q2 and SDI narrowing losses. The US-China summit did not allow Chinese battery entry, supporting the de-China supply chain narrative. The recent pullback is a buying opportunity for large-cap cell makers.

PharmaResearch is showing a similar monthly chart pattern to last year's breakout. If it can break above the 5-month moving average of 357,000 won, short covering and further upside could follow. Institutional buying is increasing, and foreigners also bought today.

Applied Materials reported a strong earnings beat with 11% YoY revenue growth, guidance significantly above consensus (midpoint ~$9B vs. $8.25B consensus, adjusted EPS $3.36 vs. $2.88 consensus), and management guided for 30%+ semiconductor equipment business growth in CY2026, driven by AI infrastructure buildout, leading-edge logic/DRAM/advanced packaging. Revenue growth is accelerating from low-single-digit/negative to double-digit, operating leverage is improving (operating margin up to 32%), and EPS growth for next quarter is guided at ~35.5% YoY. Park sees the stock as undervalued given the earnings power and expects further upward revision as the capex cycle continues into 2027-2028.

Korean shipbuilding stocks are strongly attractive due to accelerating earnings, margin improvement, and a new growth driver in data-center engine demand. The engine business, which is easy to expand capacity, can command a 40x PE multiple, while the current valuation of HD Hyundai Heavy Industries is under 15x PE. HD Korea Shipbuilding also has strong cash holdings. The combination of rising newbuilding prices, already visible earnings growth, and the engine catalyst makes shipbuilding a compelling investment.