Buy Fallen Samsung Electronics! The Only Way to Survive in a Market with Extreme Volatility? | Lee Jaegyu, SK Securities PB Deputy Manager [Focus Today's Stock]

Summary

Lee Jaegyu of SK Securities analyzes extreme volatility in the Korean market, emphasizing that large-cap stocks (especially AI semiconductors) should be the focus due to ETF-driven flows. He provides bullish outlooks on semiconductors, secondary batteries (LG Energy Solution), power equipment, shipbuilding, and IT components, while maintaining a cautious watch on biotech/pharma. His key advice is to use volatility as an opportunity for dip-buying within leading sectors.

• Extreme market volatility (KOSPI daily swings 5%) is here to stay due to ETF concentration.
• Semiconductors (Samsung Electronics, SK Hynix) remain the undisputed leading sector.
• LG Energy Solution gains a major ESS contract for the Stargate AI project, boosting revenue outlook.
• Power equipment stocks (Hyosung Heavy, HD Hyundai Electric) should be bought on dips due to global shortages.
• Shipbuilding (HD Hyundai Heavy, HD Hyundai Marine Solution) offers attractive relative valuation vs power equipment.
• IT component stocks (Samsung Electro-Mechanics, LG Innotek) benefit from AI-driven component shortages.
• Korean biotech/pharma sector is bottoming and showing relative strength; watch for further confirmation.
• Investors should focus on large-cap stocks in both KOSPI and KOSDAQ to capture liquidity and ETF flows.