Target Price Is Meaningless. 'Spectacular Finale' You'll Regret Not Buying Now | Lee Kyung-min, Daishin Securities FICC Research Department Head [Yeouido Insight]

Summary

Lee Kyung-min, Head of FICC at Daishin Securities, argues that KOSPI is deeply undervalued and in an earnings-driven bull market with no fixed target. He recommends Korean internet and pharma/biotech stocks as laggards with upside, and sees a 'spectacular finale' until August/September 2025, followed by a gradual peak and rotation into energy and defensive sectors.

• KOSPI forward PER is only 8.16x, well below historical average, with rising EPS supporting further upside.
• Internet stocks (Naver, Kakao) are cheap despite improving earnings, poised for a rally as bond yields stabilize.
• Pharma/biotech is similarly undervalued; upcoming medical conferences could act as catalysts.
• KOSDAQ is expensive on PER but could benefit from a premium tier index launch and lower bond yields.
• Crude oil and natural gas ETFs are recommended as a rotation play for the second half of 2025.
• Semiconductor leaders should be gradually reduced after August/September, with rotation into laggards and defensive assets.
• Market peak is expected to be a gradual process, not a sudden crash, similar to 2021.