Samsung Electronics, SK Hynix: I thought it was over... Big money supply and demand have returned | Lee Jaegyu, SK Securities PB Deputy Manager [Today's Featured Stock]

Summary

Lee Jae-gyu, PB Deputy Manager at SK Securities, presents a bullish view on the Korean market supported by the return of large-scale foreign inflows and stabilizing macro conditions. He highlights semiconductors as core AI-driven investments, notes that Samsung Electro-Mechanics and LG Innotek are now joining the rally, and identifies opportunities in shipbuilding, defense, nuclear energy, and airlines. The speaker advises maintaining equity exposure with a small cash cushion and emphasizes supply/demand as the key market driver.

• Foreign investors returned with +1 trillion won net buying, the first such day since early May, signaling improved supply/demand.
• Falling oil prices, a stabilizing US 10-year yield, and easing geopolitical risks are reducing macro headwinds.
• The AI narrative remains a powerful structural catalyst for Samsung Electronics, SK hynix, and increasingly for component makers like Samsung Electro-Mechanics and LG Innotek.
• Shipbuilding stocks have a near-term catalyst in US investment cooperation and are seen as relatively undervalued.
• Defense and nuclear energy stocks (Hanwha Systems, Doosan Enerbility) rebounded from oversold, attractive PBR levels.
• Korean Air benefits from lower oil prices and showed price resilience during geopolitical turmoil, supported by strong Q1 results.
• The secondary battery sector is showing signs of a turnaround as EV sales turn positive and ESS profitability surprises to the upside.
• The speaker recommends keeping a 15-25% cash allocation while staying broadly invested, using dips to add exposure.