Emergency Interview: Morgan Stanley 'Buy Samsung Electronics, SK Hynix'… Reason for Strong Buy Call / August Semiconductor Exports Explode 155%… The Great Counterattack Begins | Lee Kyung-min, Department Head

Summary

Lee Kyung-min, Department Head at Daishin Securities, argues that the sharp sell-off in Korean semiconductor stocks is a strong buying opportunity. He cites extremely low valuations, ongoing earnings growth, and completed deleveraging from leveraged ETFs. Samsung Electronics and SK Hynix are both favored, with Samsung expected to outperform due to HBM4 qualification and foundry turnaround potential.

• Lee Kyung-min believes current levels offer a strong entry point for Samsung Electronics and SK Hynix.
• Valuations are at historic lows with P/B around 3.5-3.8x, well below past averages.
• Earnings are still improving into the first half of next year; peak-out fears are premature.
• Deleveraging from leveraged ETFs has largely run its course, removing a source of selling pressure.
• Samsung has additional upside from HBM4 qualification and possible foundry turnaround.
• SK Hynix benefits from Solidigm's NAND capacity expansion but lacks similar non-memory catalysts.
• August 1-10 semiconductor exports jumped 155% YoY, with momentum expected to strengthen by month-end.