Things That Will Happen Before the 6G Era | Kim Hong-sik, Managing Director, Hana Securities Research Center

Summary

Kim Hong-sik, Managing Director at Hana Securities Research Center, argues that telecom equipment shares are in a 2019-like narrative rally ahead of the 6G era. He expects 5G investment, spectrum auctions, wireless traffic recovery, and possible third-quarter earnings improvement to support the sector. He also highlights AI data-center-driven optical demand through RF Materials and Lumentum. Longer term, he expects 5G incumbents and base-station/repeater equipment makers to remain advantaged in 6G, with satellites complementing terrestrial networks in rural areas.

• Kim Hong-sik sees Korean 5G telecom equipment repeating a 2019-style rally.
• RFHIC is cited as a 5G leader with strong earnings and remains in his portfolio.
• Wireless traffic and 5G standalone security spending are expected to support equipment demand.
• AI data-center optical demand is already surging, with RF Materials and Lumentum named.
• New spectrum auctions and possible Q3 earnings improvement are near-term catalysts.
• 6G is expected to overlay 5G rather than replace it.
• Same LTE/5G equipment leaders are expected to lead in 6G.
• Satellites are seen as complementary to base stations, especially in rural coverage.