Construction and semiconductor stocks have changed dramatically. Why? / MLCC and Samsung Electro-Mechanics, will the next rally begin? | iM Securities Seoul Financial Center Director Lee Young-hoon

Construction and semiconductor stocks have shifted dramatically… Why? / MLCC and Samsung Electro-Mechanics, will the next rally begin? | iM Securities Seoul Financial Center Director Lee Young-hoon

Watch on YouTube ↗ | September 13, 2026 at 06:00 | 21:00 | 815 Money Talk (815머니톡)

Speakers

Lee Young-hoon — Director

Summary

Lee Young-hoon of iM Securities Seoul Financial Center said the construction and semiconductor sectors have changed materially, with construction fundamentals improving on Saudi orders, reconstruction, LNG/nuclear, domestic energy and fab projects, and housing redevelopment, while the semiconductor upcycle may run longer than expected because China remains constrained by equipment and talent barriers. He favors Samsung Electronics and SK hynix, sees a possible MLCC rally through Samsung Electro-Mechanics, and likes nuclear power while treating transformers and power equipment as a buy-dip/sell-rally area. He also argues shipbuilding should be viewed as an AI data-center play, highlighting Hyundai Heavy Industries' engine capacity expansion and Hanwha Engine's upcoming stationary-engine plant.

Construction fundamentals improved on Saudi orders, reconstruction, LNG/nuclear, domestic energy, and housing projects.
Semiconductor cycle may extend because China's DRAM catch-up is slowed by equipment and talent constraints.
Samsung Electronics and SK hynix are viewed positively.
Murata's MLCC discontinuation and AI mix shift could support Samsung Electro-Mechanics.
Nuclear expectations remain live, while transformers and power equipment are seen as a buy-dip/sell-rally trade.
Shipbuilding is increasingly seen as an AI data-center and engine play.
Hyundai Heavy Industries and Hanwha Engine are named data-center engine beneficiaries.
Oracle earnings passed a hurdle, but cash flow and rates remain key.

Ideas

Lee Young-hoon Director 0:00

Korean construction fundamentals have improved sharply.

Korean construction is in a much better fundamental environment than the past few years, even though he historically disliked the sector and valuations are no longer cheap. Drivers include Samsung E&A's Saudi order and postwar reconstruction demand, LNG and US nuclear-related construction, domestic renewable energy and energy-highway projects, semiconductor fab and Hyundai Motor plant construction, and housing-shortage redevelopment with public funding. He says he is now seriously considering the group despite PBRs already above 1x in some names.

Lee Young-hoon Director 1:10

Oracle needs cash-flow proof and easier rates.

Oracle's strong earnings passed one market hurdle, but he remains focused on cash flow because Oracle is financially weaker and its large capex plan of about $90-92 billion raises questions about how free cash flow will develop. A renewed positive catalyst likely requires the macro and rates environment to ease before investors re-engage.

Lee Young-hoon Director 5:45

Nuclear expectations can continue pre-announcement.

Nuclear power remains the live theme within the AI power and value chain. He says the nuclear scale is dominant and an announcement may come soon, so expectations for nuclear-related stocks can continue until that catalyst.

Lee Young-hoon Director 6:12

Buy power-equipment dips, sell rallies.

Transformers, switchgear, and distribution/transmission equipment are tied to the AI power value chain, but he prefers a trading-range approach: buy when they fall sharply and exit when they bounce, rather than holding for a clean long-term trend.

Lee Young-hoon Director 11:34

Korean memory chip cycle can extend.

The semiconductor cycle, especially memory, may run longer than expected. China's CXMT is a long-term DRAM threat, but DDR5 yields are low and costs are over 30% higher than Korean peers, HBM is not yet at yield-discussion stage, and US restrictions on advanced equipment plus limits on Korean talent outflow can slow China's catch-up. He explicitly likes Samsung Electronics and SK hynix as AI-cycle beneficiaries.

Lee Young-hoon Director 13:55

Samsung Electro-Mechanics follows AI MLCC upcycle.

Murata's discontinuation of low-end MLCC products and shift to AI/high-margin capacity is creating an MLCC shortage and price-hike expectation, and Samsung Electro-Mechanics is likely to follow the same strategy toward AI-linked high-value products. Its valuation has become less stretched after the share-price decline and earnings upgrades, with PER around 40x versus over 90x at the prior peak, so it should participate in the AI trend, though he does not expect it to outperform the broader electronics leaders alone.

Lee Young-hoon Director 16:14

Shipbuilding is an AI data-center play.

Shipbuilders are no longer just ship makers; engines and marine power equipment link them directly to AI data-center demand. Although Q3 results may be pressured by won strength, strikes, and holidays, the structural story is improving. US Navy/MRO work is delayed by politics and lobbying but should eventually open, and data-center engine orders and capacity expansions are adding a new growth driver. He says shipbuilding deserves attention as part of the AI value chain.

Lee Young-hoon Director 18:12

Hyundai Heavy expands data-center engine capacity.

Hyundai Heavy Industries won three data-center-related engine orders, including onshore units, and then announced a capacity expansion of over KRW 8 trillion, lifting capacity from about 3GW to around 7.4GW. He estimates each 1GW can generate about KRW 1 trillion in revenue with over 20% operating margin, implying roughly KRW 1 trillion of additional profit, a major earnings driver. He notes Big Tech interest is strong enough to support the expansion.

Lee Young-hoon Director 19:56

Hanwha Engine targets data-center engines.

Hanwha Engine is also a data-center engine beneficiary. Its stationary-engine plant is expected to start operation around year-end, and Hanwha Group is seen as serious about the data-center engine business, so the company should stay in focus as orders develop.

Up Next

Bloom Energy (BE) S&P 500 Inclusion, Selling 'Time' Not 'Electricity' | Executive Director Park Se-ik & Chesley Learning Department Head & CEO Lee Hyo-seok & Department Head Cho Jae-wan [Byeoljubujeon / 26.09.12 Sat]

Chesley Investment Advisory (체슬리투자자문) · Sep 13

Samsung Electronics Foundry's String of Good News… Why Are Institutions Buying Samsung Electronics More Than SK Hynix? / After a Rate Hike, Will Big Tech's AI Investment Decrease | Yu Chang-hee, CEO of YouStock

815 Money Talk (815머니톡) · Sep 13

Is Korea's Real Estate Myth of Invincibility a Thing of the Past? | Seo Dong-gi, First Doctorate in Real Estate Studies [Weekend Interview]

3PRO TV (삼프로TV) · Sep 13

How to Live Off Your Portfolio | Ian Cassel, Author of Stock Picker (TIP846)

We Study Billionaires · Sep 13

A ELEIÇÃO DE 2026 PODE SER DECIDIDA PELO “MENOS PIOR”?

Market Makers · Sep 13

This 815 Money Talk (815머니톡) video, published September 13, 2026, features Lee Young-hoon discussing Korean construction sector, ORCL, Korean nuclear power sector, Korean Power Equipment Sector, 005930.KS, 000660.KS, 009150.KS, Korean shipbuilding sector, 329180.KS, 082740.KS. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lee Young-hoon · Tickers: Korean construction sector, ORCL, Korean nuclear power sector, Korean Power Equipment Sector, 005930.KS, 000660.KS, 009150.KS, Korean shipbuilding sector, 329180.KS, 082740.KS