Semiconductor Focus Era: SK Hynix ADR's Investment Strategy_26.06.23

Semiconductor Focus Era…SK Hynix ADR's Investment Strategy_26.06.23. | Kim Jong-mun, Yeo Do-eun, Heo Jae-mu [Morning N Investment]

Watch on YouTube ↗ | June 23, 2026 at 02:26 | 58:37 | 3PRO TV (삼프로TV)

Speakers

Kim Jong-mun — Director

Summary

PB Manager Kim Jong-mun discusses the semiconductor-dominated market, explaining SK Hynix's rise past Samsung Electronics in market cap is not a market top signal but reflects structural AI demand, especially HBM. He presents a bullish view on both SK Hynix and Samsung Electronics, highlights the ADR listing catalyst, and identifies undervalued opportunities in Samsung preferred shares, KEPCO, Korea Investment Holdings, and an insurance GA company. He also argues the entire Korean market is extremely cheap globally and due for re-rating.

SK Hynix leads in HBM with high ROE, ADR listing to attract US passive flows
Samsung Electronics remains a strong profit leader and will catch up; preferred shares offer near 9% dividend yield
KEPCO is a deep-value utility with 7%+ dividend yield and nuclear power growth catalyst
Korea Investment Holdings provides strong earnings and a governance discount narrowing opportunity
A top-2 insurance GA company (INKA Financial Service) trades at a deep discount with high dividend and buybacks
The KOSPI is one of the world's cheapest markets, only above Turkey, with re-rating potential driven by record semiconductor earnings
Caution on ELS products due to structured product risks, and on robotics/physical AI names without visible earnings

Ideas

Kim Jong-mun Director 5:30

AI memory leader with ADR catalyst.

SK Hynix is a primary beneficiary of the AI-driven structural growth in memory, particularly HBM, where it holds over 50% market share. Its pure-play memory focus delivers ROE around 65% versus Samsung's 42%. Earnings are surging, with next year's global operating profit ranking third only behind NVIDIA and Samsung. The upcoming ADR listing will unlock US investor access and passive fund inflows, narrowing the valuation gap with Micron.

Kim Jong-mun Director 6:03

Undervalued global profit leader will catch up.

Samsung Electronics is also performing well with absolute operating profit still dominant and set to become global #1 next year. Its share price has lagged SK Hynix due to market focus on pure-play memory, but the earnings gap supports a catch-up. The stock is undervalued on a global basis, and potential special dividends add upside. It remains a strong core holding.

Kim Jong-mun Director 22:09

ADR listing unlocks US investor access.

SK Hynix ADR listing in the US will simplify foreign ownership, attract institutional and passive funds, and improve the stock's global liquidity and valuation normalization. The ADR approval is expected this week, with trading possible around August. This catalyst supports a re-rating of the Korean listing as well.

Kim Jong-mun Director 35:06

Deep value utility with high dividend.

Korea Electric Power Corp (KEPCO) is deeply undervalued after falling over 40% from highs. It offers a dividend yield of 7% or more supported by rising earnings as oil prices fall. Global nuclear power investment trends favor KEPCO's subsidiary Korea Hydro & Nuclear Power, and gradual electricity rate normalization for industrial users adds earnings visibility. The low PBR and high dividend make it an attractive defensive play with upside.

Kim Jong-mun Director 37:29

Strong earnings, cheap securities holding company.

Korea Investment Holdings (한국금융지주) shows strong earnings momentum among securities firms and is relatively undervalued compared to peers. Governance issues may gradually discount less, and preferred shares, if available, offer an even steeper discount. The stable dividend and earnings growth support a tactical allocation.

Kim Jong-mun Director 38:18

Insurance GA with high dividend, deep pullback.

An insurance GA (general agency) company, implied to be 인카금융서비스, has fallen about 40% from its peak while earnings continue to grow 10-20% annually. It is the industry's second-largest player, pays a high dividend yield, conducts share buybacks, and has a shareholder-friendly policy. The structural growth of GA model supports a tactical long position.

Kim Jong-mun Director 43:15

Preferred shares offer higher dividend yield.

Samsung Electronics preferred shares trade at a 30-35% discount to common shares. With expected special dividends from surging earnings, the dividend yield on preferreds could approach 9%, more than 50% higher than common. Foreign investors have been consistently buying preferreds. For long-term investors not trading actively, preferreds offer a superior income and valuation opportunity.

Kim Jong-mun Director 47:29

KOSPI extremely undervalued globally, will re-rate.

The KOSPI is exceptionally cheap globally, trading at a single-digit PER and only second-cheapest to Turkey among major markets. The massive earnings growth from Samsung Electronics and SK Hynix has not been reflected in overall market valuations. This extreme undervaluation argues for eventual normalization and broad Korean equity upside.

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This 3PRO TV (삼프로TV) video, published June 23, 2026, features Kim Jong-mun discussing 000660.KS, 005930.KS, SK Hynix ADR, 015760.KS, 071050.KS, INKA Financial Service, 005935.KS, EWY. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kim Jong-mun · Tickers: 000660.KS, 005930.KS, SK Hynix ADR, 015760.KS, 071050.KS, INKA Financial Service, 005935.KS, EWY