Foreigners have returned, but it's too early to be relieved... Samsung Electronics and SK Hynix rebound, the real trend reversal will be decided tomorrow

Summary

CEO Lee Kwon-hee of WiseWave analyzes the recent semiconductor-driven market rebound, attributing it to cool CPI, long-term supply agreements, and sustained capex. He provides specific stock views on Samsung Electronics, SK Hynix, Hanmi Semiconductor, Hyundai Motor, and Samsung Electro-Mechanics, while advising caution and a shift toward equipment names. He also notes biotech is bottoming and suggests monitoring for a September catalyst.

• Semiconductor upcycle intact: Philadelphia Semi Index rebounds 20%, trend likely to continue through 2027 due to tight supply and rising ASPs.
• Samsung Electronics and SK Hynix benefit from 5-year LTAs at higher prices, supply shortages, and potential shareholder return upgrades.
• Semiconductor equipment capex super-cycle starting: recommend reducing memory exposure and increasing equipment via ETFs.
• Hanmi Semiconductor posts record quarterly earnings, CEO aggressively buying shares; break above 270k KRW could target all-time highs.
• Hyundai Motor sold off due to leveraged ETF rotation, not fundamentals; adding below 500k KRW ahead of expected August catalysts.
• Samsung Electro-Mechanics bounced from support with Barclays bullish on MLCC/substrates, leading a recovery in substrate/PCB stocks.
• Korean biotech sector is bottoming in July–August; monitor for a meaningful shift in September (Alteogen, ABL Bio, LigaChem).
• Overall market still needs trend confirmation; Lee advises against chasing, maintains cash, and waits for the index to break the downward trend line.