A market where it's risky to only hold semiconductors… It's time to diversify into shipbuilding and consumer goods | Myeong Min-jun, Choi Hyo-eun, Hwang Yu-hyeon

Summary

Shinhan Investment Securities PB Team Lead Hwang Yu-hyeon analyzes a Korean stock market dominated by Samsung Electronics and SK Hynix. He argues that holding semiconductors as core is essential while volatility punishes other sectors. He sees improving conditions for diversification into shipbuilding, selected consumer names like Samyang Foods, semiconductor equipment, and Middle East plant construction, but warns against secondary battery and biotech plays.

• KOSPI retests highs near 8,900-9,000 driven by Samsung Electronics and SK Hynix on AI and war-ending optimism.
• Retail investors struggle with extreme volatility in Kosdaq and non-semiconductor names; many are trapped in losing positions.
• Core portfolio should keep 50%+ in Samsung Electronics and SK Hynix, with a tilt towards SK Hynix due to HBM-driven market cap convergence potential.
• Shipbuilding sector is the top pick for diversification after a period of volatile range trading, with second-half catalysts ahead.
• Samyang Foods stands out among consumer goods on record exports and a depressed stock price, offering a selective earnings play.
• Semiconductor equipment stocks sold off but remain attractive long-term on expected new fab investment orders.
• Middle East plant construction names (DL E&C, Daewoo E&C, Samsung E&A) offer real order-based alpha, unlike prior speculative reconstruction themes.
• Secondary battery and biotech sectors should be avoided as they lack momentum and buying the dip is dangerous.