Name: [Highlight] Now is an attractive time for semiconductor materials, parts, and equipment stocks | Chesley Investment Advisory [Morning Brief / 23.07.26.Thu]
Uploaded: 2026-07-23T01:09:12+00:00
Duration: 1007 s

Speakers

Choi Ho — Vice President

Park Se-ik — CEO, ex-Chief Strategist

Summary

The video reviews a KB Securities report on detecting the semiconductor cycle peak using profit margins and a macro indicator, concluding the peak is not yet here. It then argues that Korean semiconductor materials, parts, and equipment stocks are now attractively priced after a sell-off, with specific focus on SIC ring maker TCK as a cheap beneficiary of upcoming NAND capex.

Semiconductor cycle peak not reached; even if margins crest in Q4 2025, stock prices may rise for another 2–3 quarters
KB Macro Super Cycle indicator has not turned down, supporting the continuation of the cycle
Semiconductor materials/parts/equipment stocks have fallen to or below early-cycle valuations from March-April 2025
TCK is highlighted as a cheap SIC ring maker (40% off high) with margin improvements ahead from royalty contract expiry
NAND investment is expected to accelerate from H2 2026, driving demand for TCK’s products and potential re-rating

Ideas

Choi Ho Vice President 7:42

소부장 sector cheap after selloff, cycle ongoing

Korean semiconductor materials, parts, and equipment stocks (소부장) have corrected sharply and now look attractive. Many are trading below the valuation levels seen in March-April 2025 when Samsung and SK hynix started their last rally, despite the semiconductor cycle still being intact. The volume-driven part of the cycle is now expected to benefit these companies, especially as NAND investment accelerates.

Choi Ho Vice President 7:54

NAND capex to drive TCK re-rating

TCK is a SIC ring maker for semiconductor equipment, down 40% from its high, trading at a cheap valuation. A temporary revenue recognition issue with Chinese equipment firm AMEC will resolve in H2 2025, and the sales royalty contract with KC that suppresses margins will expire in 2027, adding 2 percentage points to operating margin. Crucially, NAND capital expenditures are expected to begin from the second half of next year, driving demand for SIC rings. The company has not yet reached the valuation multiples it achieved in the previous cycle, leaving room for re-rating if earnings growth materializes.

Park Se-ik CEO, ex-Chief Strategist 11:14

Chip cycle intact, mega-caps oversold cheap

Samsung Electronics and SK hynix have fallen excessively and are now undervalued. The semiconductor cycle peak is not yet here; even if profit margins peak in Q4 2025, stock prices may still rise for another two to three quarters, as historical patterns show. The KB Macro Super Cycle index has not turned down, supporting the view that the cycle is intact. The stocks are oversold and have room to rebound.

This Chesley Investment Advisory (체슬리투자자문) video, published July 23, 2026, features Choi Ho, Park Se-ik discussing Korean semiconductor materials, parts, and equipment stocks, TECK, 005930.KS, 000660.KS. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Choi Ho, Park Se-ik · Tickers: Korean semiconductor materials, parts, and equipment stocks, TECK, 005930.KS, 000660.KS

Now is an attractive time for semiconductor materials, parts, and equipment stocks

Summary

Ideas

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