Here it comes! The rotation market, the really important point | Bae Jae-won, Hana Securities Incheon Branch PB

Summary

Bae Jae-won, a PB at Hana Securities' Incheon branch, argues the Korean market is in a rotation phase rather than a broad downtrend. He favors buying semiconductor dips because Alphabet's capex guidance and HBM shortages support AI-related demand, and he sees opportunities in defense, cosmetics, asset-rich value stocks, and a tactical silver rebound. He stresses selecting earnings-visible leaders within sectors, such as Hanwha Aerospace and APR, while avoiding names like PharmaResearch that missed expectations.

• Bae Jae-won describes a rotation market where money moves between leading sectors rather than leaving equities.
• Alphabet's higher 2026 capex guidance and ongoing HBM/AI component shortages underpin a bullish semiconductor view.
• Korean semiconductor earnings estimates and target prices are rising, supporting a buy-on-dips approach for Samsung Electronics and SK hynix.
• Defense is viewed as an overlooked rotation opportunity, with Hanwha Aerospace cited for earnings and space momentum.
• Cosmetics is highlighted for visible earnings growth, with APR favored and PharmaResearch cited as a negative example.
• Rising U.S. Treasury yields are said to increase the appeal of asset-rich value stocks.
• Silver is presented as a tactical rebound trade after a sharp plunge.
• The overall strategy is to rebalance across sectors and pick the strongest earnings names within each theme.