Birth of a New Leading Stock... After Chuseok, the Game Completely Changes / Samsung Electronics: If You Have Cash, Do This

Summary

Shinhan Investment Corp. team leader Hwang Yoo-hyun discusses Samsung Electronics' large shareholder return announcement and resulting selloff, arguing the stock is bottoming in a range and should be bought on dips, while SK hynix is better for trading and SK Square should be avoided. He cautions against leveraged ETFs, sees cosmetics as tradable but not a new secular leader, and says the next market leader may emerge after Chuseok. For current cash, he prefers Korean semiconductor equipment and secondary battery equipment on pullbacks.

• Samsung Electronics fell after its shareholder return plan because buyback was missing; the speaker sees attractive dividend support, technical bottoming, and a roughly 240,000-280,000 won range for buying dips and selling rallies.
• SK hynix is viewed as the better trading vehicle with support near 160,000-163,000 won and continued buybacks providing a floor.
• SK Square is seen as a weakening leveraged proxy for SK hynix, with limited upside and SK hynix main shares preferred.
• Leveraged ETFs on Samsung Electronics and SK hynix should be avoided or only traded very short-term because of decay in a sideways market.
• Cosmetics is currently a leader but lacks a global innovation edge; robots and reducer stocks such as Robotis are candidates to watch.
• Before Chuseok, aggressive trading should be reduced; after Chuseok a new leading stock may emerge.
• For cash, Korean semiconductor equipment and secondary battery materials/equipment are favored on pullbacks.