Credit Balance Surge... Institutions Selling Samsung Electronics and SK Hynix Pick 'This Stock' / US Ban on Chinese ESS... Where Is the Domestic Secondary Battery Leader? | Director Lee Ju-yeon

Summary

Director Lee Ju-yeon explains why Samsung Electronics and SK Hynix have lost near-term leadership and are likely to stay sluggish into October as institutions sell and retail investors crowd in with credit. She argues money is rotating into sectors such as secondary batteries, pharma/bio, robotics, and power equipment. She details Goldman Sachs' bullish calls on LG Chem, LG Energy Solution, and Korea's power-equipment trio with Hyosung Heavy as top pick, and says the US crackdown on Chinese grid ESS accelerates demand substitution toward Korean battery makers.

• Samsung Electronics and SK Hynix are seen rangebound until October results; keep a core position but trim overweight exposure.
• Retail credit balance surged roughly KRW 4.17 trillion in August, with about 40% concentrated in Samsung Electronics and SK Hynix.
• The view favors rotating into non-semiconductor leadership sectors including secondary batteries, pharma/bio, robotics, and power equipment.
• Goldman Sachs is bullish on LG Chem and LG Energy Solution due the US behind-the-meter storage exemption.
• Samsung SDI and L&F are preferred as the fastest secondary-battery and ESS recovery names.
• Goldman initiated on Hyosung Heavy, HD Hyundai Electric, and LS Electric, with Hyosung Heavy as the top pick on US grid and transmission demand.
• The US ban on Chinese grid-scale ESS and ESS demand approaching or overtaking EV battery demand are positives for Korean battery makers.