KOSPI 7384 Surge, but Still Undervalued? Don't Sell Until This Signal - Daishin Securities Lee Kyung-min

[Emergency Interview] KOSPI 7384, Surging Market… But Why Korean Stocks Are Still Undervalued / Don't Look at Target Prices… Never Sell Until 'This Signal' Appears | Daishin Securities Manager Lee Kyung-min
Watch on YouTube ↗  |  May 06, 2026 at 08:30  |  23:58  |  815 Money Talk (815머니톡)
Speakers

Summary

Lee Kyung-min of Daishin Securities argues that the KOSPI rally to 7,400 is justified by strong earnings growth and historically low valuations. He highlights semiconductors, power equipment, and securities as undervalued sectors with structural drivers, advising investors to hold until EPS peaks.

  • KOSPI forward P/E is 7.2x, below historical crisis lows, while EPS is surging.
  • Samsung Electronics and SK Hynix trade at 4-5x P/E vs 20x+ for global peers; long-term contracts could re-rate valuations.
  • Power equipment companies (HD Hyundai Electric, Hyosung Heavy, LS Electric) benefit from AI data centers, Middle East infra, and US grid upgrades.
  • Securities sector undervalued relative to earnings; new US investor access channel provides growth catalyst.
  • Domestic financial investment (ETF inflows) now dominates foreign flows as a driver of the market.
  • Lee recommends holding stocks and not selling until the earnings cycle shows signs of peaking.
Speakers

Summary

Lee Kyung-min, Director at Daishin Securities, argues that the Korean stock market (KOSPI) remains undervalued despite a sharp rally, driven by surging earnings. He advises against selling until EPS peaks and highlights structural opportunities in semiconductors, power equipment, and securities stocks. The market is being supported by strong domestic ETF inflows, while foreign selling has had little impact.

  • KOSPI trades at a trailing P/E of ~7.2x, well below historical averages of 9.5-10x.
  • Earnings per share for KOSPI have risen over 50% in three months and continue to be revised up.
  • Samsung and SK Hynix are deeply undervalued at 4-5x P/E vs global peers above 20x.
  • Power equipment companies are winning long-term contracts driven by AI, grid, and Middle East infrastructure.
  • Securities firms benefit from new US investor direct access channels.
  • Foreign investors are net sellers but domestic financial investors (ETF inflows) dominate and lift the market.
  • The speaker recommends holding stocks and buying dips, not selling, until EPS shows signs of peaking.
  • Short-term pullbacks are viewed as consolidation, not trend reversals.
Trade Ideas
Lee Gyeong-min Manager 2:21
KOSPI undervalued; EPS rising; hold.
KOSPI remains deeply undervalued despite the recent surge, with trailing P/E around 7.2x, well below the historical average of 9.5x (2010+) and 10x (post-2010). Earnings per share have surged over 50% in a few months and continue to be revised upward for 2026 and 2027. As long as EPS continues to rise, the index should move higher regardless of short-term volatility. Target prices are meaningless; investors should hold until EPS peaks.
EWY HIGH
Lee Gyeong-min Manager 5:56
Memory chip stocks undervalued, long-term contracts.
Samsung Electronics and SK Hynix are structurally undervalued at 4-5x P/E compared to global peers like TSMC (>20x). AI server demand dominates revenue, and potential long-term contracts (previously quarterly) could re-rate valuations significantly. Earnings momentum remains strong through Q2 2026, with further upside in spot prices and order backlogs.
005930.KS 000660.KS HIGH
Lee Gyeong-min Manager 19:05
Securities stocks undervalued, US investor inflow.
Securities firms, particularly Samsung Securities, are undervalued relative to surging earnings from higher trading volumes. A new catalyst is the direct channel for US investors to buy Korean stocks, which has already expanded for one major broker and is expected to spread. This creates an additional revenue stream and justifies a sector re-rating.
016360.KS Korean Securities Sector MED
Lee Gyeong-min Manager 20:35
Power equipment stocks benefit from AI, grid.
Power equipment companies (HD Hyundai Electric, Hyosung Heavy Industries, LS Electric) benefit from three structural drivers: AI data center grid demand, grid replacement cycles, and Middle East mega-infrastructure. Korean firms have competitive advantages in local production and long-term contract wins. Order backlogs are at record highs, with Q1 2026 alone booking a significant portion of annual targets. The sector remains undervalued relative to earnings growth.
267260.KS 298040.KS 229640.KS HIGH
Lee Gyeong-min Manager 20:35
Power equipment structural demand; long-term contracts
Korean power equipment companies are benefiting from three structural drivers: AI data center grid upgrades, Middle East mega-infrastructure, and US grid modernization. Korean companies like HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric have competitive advantages in local production and supply-chain constraints, winning long-term 10-year contracts. Order backlogs are at record highs, and the sector has further upside.
010120.KS HIGH
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This 815 Money Talk (815머니톡) video, published May 06, 2026, features Lee Gyeong-min discussing EWY, 005930.KS, 000660.KS, 016360.KS, Korean Securities Sector, 267260.KS, 298040.KS, 229640.KS, 010120.KS. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lee Gyeong-min  · Tickers: EWY, 005930.KS, 000660.KS, 016360.KS, Korean Securities Sector, 267260.KS, 298040.KS, 229640.KS, 010120.KS