Momentum Tsunami is Coming, Now Turn Your Gaze

Summary

Kim Hong-sik, managing director at Hana Securities Research Center, argues that an upcoming US frequency auction (upper C-band) will ignite a massive 2026 wireless communication equipment cycle similar to 2019. He recommends buying Korean wireless vendors KMW, HFR, and RFHIC, which will benefit from Chinese vendor exclusion. He also views SK Telecom as an AI play that will rise with equipment stocks, not a defensive. He sees the recent sharp sell-off as a buying opportunity despite market volatility.

• US frequency auction (upper C-band) expected to be approved, triggering major telecom investment
• 2026 predicted to be a big year for wireless communication equipment, mirroring the 2019 boom
• Chinese vendors will be excluded from the market, benefiting Korean suppliers to Ericsson, Nokia, Samsung
• Recommended wireless equipment stocks: KMW, HFR, RFHIC
• SK Telecom seen as an AI-linked play that will move with equipment stocks, target 130,000 won
• Recent excessive decline in communication equipment stocks viewed as a buying opportunity
• Optical equipment stocks have already shown their upside and are now less attractive