Hyosung Heavy Industries, HD Hyundai Electric Long-Term Contract Jackpot... No Momentum Problem. 'Please Bury the Plunging Power Stocks.' | CEO Lee Kwon-hee

Summary

Lee Kwon-hee, CEO of WizWave, lays out a bullish thesis on Korean power equipment leaders, construction beneficiaries of semiconductor mega projects, and the structural growth of the semiconductor equipment sector. He also gives a long-term price target for Samsung Electronics and warns against holding volatile small power equipment names for the long run.

• Korean power equipment leaders (HD Hyundai Electric, Hyosung Heavy, LS Electric) are winning large global contracts and are in a sustained uptrend; a 10-15% portfolio allocation is advised.
• LS Corp is highlighted as a cheap holding company play on the power equipment theme at 19x PER.
• Samsung C&T and Samsung E&A are the biggest direct beneficiaries of the multi-year semiconductor plant construction megaprojects.
• The semiconductor equipment sector is moving from a cyclical to a structural growth phase due to simultaneous mega fab builds.
• Samsung Electronics has a long-term upside target of 850,000–900,000 KRW based on a 15-20x P/E multiple.
• Small power equipment and cable stocks (Iljin Electric, Jaeryong Electric, Daehan Cable, Gaon Cable) are too volatile and overvalued for buy-and-hold investors.
• The speaker suggests a core portfolio heavy in semiconductors (50%) with a meaningful power equipment allocation and additional semiconductor equipment names.