Daily Morning Fund Managers' Investment Meeting Live | Park Se-ik Senior Managing Director & Chesley Investment Advisory [Morning Brief / Aug 12, 2025 Wed]
Daily Morning Fund Managers' Investment Meeting Live | Park Se-ik Senior Managing Director & Chesley Investment Advisory [Morning Brief / 26.08.12.Wed]
Speakers
Wang
— China market analyst, Department Head
Choi Ho
— Vice President
Park Se-ik
— CEO, ex-Chief Strategist
Haesu
— Crypto analyst
Summary
Park Se-ik and Choi Ho host a morning investment meeting with China analyst Wang. They detail actionable ideas: Shenzhou International as a cheap apparel OEM recovery play; Lumentum as a structural AI optical winner; SK Hynix boosted by Kioxia stake; Samsung Electronics poised for a major bounce after nearly 50% correction; Korean cosmetics stocks running on earnings beats; and RF Materials as a high-growth optical supplier. The team also highlights memory supply tightness through 2028 and AI optical bottlenecks.
- Shenzhou International: global No.1 sports apparel ODM, 1H earnings missed but 2H recovery expected, valuation 9-10x, dividend yield ~4.8%
- Lumentum: revenue +109% YoY, margins expanding, demand exceeds supply by 30%, capacity to fill only by 2028, structural optical upgrade cycle
- SK Hynix: becomes largest Kioxia shareholder, reinforcing NAND market dominance and adding to HBM momentum
- Samsung Electronics: 49% decline matches historical bounce threshold, massive shareholder return expected, memory shortage to persist
- Korean cosmetics: Cosmax and Cosmecca Korea deliver earnings beats, sector valuation expanding
- RF Materials: Lumentum pump laser package supplier, high growth, volatile but attractive valuation vs global peers
- Coherent: Lumentum peer, upcoming earnings may mirror strength, worth watching
- Memory supply tightness through 2028 supports Samsung and SK Hynix, AI optical bottlenecks benefit Lumentum and RF Materials
Ideas
Global No.1 OEM, 2H recovery, cheap.
Shenzhou International is the world's largest sportswear OEM/ODM with major clients Nike (28% of revenue), Adidas (20%), Uniqlo (20%). After a weak 1H 2025 where revenue dropped ~38-43% YoY and earnings missed consensus by 20-30% due to FX losses, low utilization at new Vietnam factory, and raw material cost pressure, the outlook for 2H improves as new factory ramps up, customer share expands, and FX stabilizes. The company has maintained a 60% dividend payout ratio, implying a ~4.8% dividend yield, and trades at just 9-10x forward earnings. With the stock heavily sold off and the worst likely priced in, the speaker explicitly says 'now is a very good time to invest' for a recovery play.
Kioxia stake strengthens NAND market dominance.
SK Hynix ADR rallied 4.7% after it became the largest indirect shareholder of Kioxia (14.19% stake) through a special purpose vehicle following Toshiba's stake reduction. This strengthens SK Hynix's dominance in the global NAND flash memory market, adds synergies, and comes on top of its existing momentum from HBM leadership. The market is now pricing in improved competitive positioning in the memory supply chain.
Structural optical shift driving exponential growth.
Lumentum is a key bottleneck supplier in the AI optical connectivity value chain, manufacturing EML laser chips and optical transceivers that convert electrical signals to light. The structural shift from copper to optical cabling inside hyperscale data centers is driving explosive demand. In its latest quarter, revenue surged 109% YoY to $1B, gross margin expanded to 50.4% from 37.8% a year ago, operating margin hit 36.6%, and EPS of $3.23 crushed estimates. Guidance was well above consensus, with revenue midpoint of $1.25B and operating margin around 40%. Management stated demand exceeds supply by 30%, capacity additions from new fabs won't meaningfully come online until 2028, and they are already signing long-term wafer supply agreements to secure upstream bottleneck materials. The company has strong pricing power, high barriers, and long-term secular tailwinds.
Lumentum peer, similar strong earnings expected.
Coherent is the other major player alongside Lumentum in EML laser chips and optical transceivers, with a vertically integrated model. Coherent is expected to report earnings shortly, and given Lumentum's blowout results and similarly tight supply-demand dynamics, the report could mirror the strength. The speaker anticipates a similar positive direction, making it worth watching ahead of the release.
Korean cosmetics boom on earnings beats.
Korean cosmetics stocks are in a powerful earnings-driven uptrend. Cosmax and Cosmecca Korea both reported strong earnings surprises: Cosmax surged after-hours on a beat, and Cosmecca Korea jumped 15% the next day. The sector is benefiting from solid export demand and brand competitiveness. Even traditionally slow Q3 is showing QoQ growth in the Korean unit, signaling sustained momentum. Valuation multiples are expected to rise alongside accelerating earnings, making the sector one of the strongest in the market right now.
Optical supply chain play with high growth.
RF Materials is a Korean pure-play optical component supplier making pump laser packages for Lumentum. The stock has surged 133% from its July low, but is still valued at just 18x 2028 forward P/E versus a global optical peer average of 45x. It has strong medium-to-long-term earnings visibility backed by Lumentum's capacity expansion and new CPO (co-packaged optics) demand. Although the stock is volatile and recently hit investment warning level, its position as a bottleneck player in the AI optical supply chain makes it a high-conviction name worth monitoring for dips.
Correction over; massive shareholder return ahead.
Samsung Electronics shares have corrected 49% from their peak, a decline magnitude that historically marks a bottom. In past major drawdowns (2008, 2022, 2024), the stock never broke 50% and subsequently rallied 60% on average. KB Securities' Kim Dong-won argues the sell-off is over, massive shareholder return policies (total 600-700 trillion won over 3 years, implying 7-15% dividend yield) will be a strong catalyst, and memory supply shortage will persist through 2028 due to 3-year construction lead times. The host endorses the view, noting the stock has already started to bounce.
Up Next
This Chesley Investment Advisory (체슬리투자자문) video, published August 12, 2026, features Wang, Choi Ho, Park Se-ik discussing 2313.HK, 000660.KS, LITE, COHR, Cosmecca Korea, Cosmax, 327260.KQ, 005930.KS. 7 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Wang, Choi Ho, Park Se-ik · Tickers: 2313.HK, 000660.KS, LITE, COHR, Cosmecca Korea, Cosmax, 327260.KQ, 005930.KS