Semiconductor, Power, Defense Stocks Comprehensive Review

Summary

Park Se-ik reviews semiconductor, power equipment, and defense stocks after a sharp market sell-off. He argues that memory names Samsung Electronics and SK Hynix have become attractive as HBM pricing fears are overblown and Chinese competition is muted. He urges caution on HD Hyundai Electric due to margin pressure from product mix and suggests avoiding Hyundai Rotem over JV margin uncertainty, while viewing LIG Nex1 as a buy on strong export-driven margin expansion.

• Memory stocks (Samsung Electronics, SK Hynix) plunged on HBM contract negotiation worries, but Park argues the impact is limited and production can shift to high-margin general DRAM.
• Chinese memory maker CXMT’s effective market share is overstated due to technology gaps and slow equipment procurement, easing oversupply fears.
• HD Hyundai Electric posted decent results but margin headwinds from distribution transformers and potential ASP normalization call for caution; wait for margin breakout.
• LIG Nex1 is favored for its export order backlog driving revenue share from 26% to 45% and supporting margin expansion, unlike peers with JV risks.
• Hyundai Rotem faces margin uncertainty from overseas JV assembly operations, and the stock has broken below its trading range, warranting avoidance.
• The broad market sell-off has made many Korean stocks attractively priced, shifting focus from risk management to profit management.