"Now a Drone Exporting Country" Going to the Center of Defense | Jo Hee-jin, Hana Securities Apgujeong Financial Center PB

Summary

Jo Hee-jin, a Hana Securities Apgujeong Financial Center PB, discusses a higher-for-longer rate backdrop, the insurance sector as a high-rate beneficiary, and her visit to recently listed AI drone company Nearthlab. She argues AI defense drones are gaining importance, while Nearthlab has strong technology and partnership credentials but still faces lock-up overhang and loss-making risks. She also expects semiconductor volatility to persist as AI capex and debt dynamics keep rates elevated.

• Rates are seen as unlikely to fall easily, with a possible year-end hiking bias.
• Korean insurers are favored on high-rate reinvestment, lower reserve needs, and potential dividend re-rating.
• Semiconductors remain a central market focus with headline-driven volatility through year-end.
• AI defense drones are viewed as increasingly necessary in Middle East and drone-versus-drone warfare.
• Nearthlab is presented as a leading Korean AI drone exporter with LIG Nex1 partnership and strong autonomy technology.
• Nearthlab risks include losses, lock-up overhang, and the need for follow-up orders.
• Clients are described as sensitive to semiconductor volatility and rapid sector rotation.