What are the alternatives in a market where Samsung Electronics and SK Hynix are taking a break?
What are the alternatives in a market where Samjeon-Nix is taking a break? | Park Ji-hoon, Yeo Do-eun, Heo Jae-mu [Morning N Investment]
Speakers
Park Ji-hoon
— Director, Asset Management Consulting Dept., NH Investment & Securities
Summary
Park Ji-hoon, Director, discusses alternatives for July in a Korean market where Samsung Electronics and SK Hynix are taking a breather. He sees strong momentum in semiconductor materials/equipment, power equipment, nuclear utilities, shipbuilding, and select biotech names with specific catalysts. He also highlights bottoming opportunities in batteries and securities, and sets a technical watch on Hyundai Motor. The overall message is that the extreme concentration in large-cap semiconductors is easing, and overlooked mid/small-cap sectors are starting to rally.
- Semiconductor equipment and MLCC stocks benefit from AI-driven shortages and rare Big Tech direct orders; Samsung Electro-Mechanics is a standout.
- Power equipment companies like LS Electric and HD Hyundai Electric rally on semiconductor cluster infrastructure demand and strong exports.
- Nuclear and utility plays Doosan Enerbility and KEPCO are back in focus on US nuclear revival legislation and deep value.
- Shipbuilding sees renewed buying interest with July momentum catalysts.
- LG Energy Solution signals the battery down-cycle is ending with Tesla demand and ESS tightness driving earnings upgrades.
- Biotech offers stock-specific events: Celltrion earnings beat, Hanmi Pharm obesity data, DND Pharmatech licensing, Olix Phase 3, and Hanall Biopharma playing catch-up.
- Cosmetics exports surge on global K-beauty wave; securities stocks are attractive on high trading volumes and low PBR.
- Hyundai Motor sits at a technical bottom with H2 catalysts but requires a confirmation candle before buying.
Ideas
Power equipment wins from chip cluster capex.
Power equipment stocks are surging because massive semiconductor cluster investments (Yongin, Gwangju) create enormous demand for electricity and water infrastructure. LS Electric's North American export data already exceeds full-year targets, signaling blowout earnings. HD Hyundai Electric benefits from strong collaboration with HD Hyundai Heavy Industries, a re-rating multiple, and FX tailwinds from the weak won. The sector is a direct winner from the capex cycle and tight power supply.
Celltrion set for consensus-beating earnings surprise.
Celltrion has set the bar so low that any decent result becomes a positive surprise. Management has deliberately slashed expectations, and recent company visits suggest earnings could easily beat the heavily downgraded consensus. In a market starved for biotech earnings momentum, Celltrion can serve as a genuine earnings-driven re-rating story within Korea's pharmaceutical space.
AI MLCC shortage supercharges Samsung Electro-Mechanics orders.
Samsung Electro-Mechanics (SEM) received a rare direct large-scale MLCC order from a global Big Tech company (likely Google) for AI servers, signaling a serious MLCC shortage. The company's earnings are set for a massive upward revision, with Q2 operating profit seen surging 87% year-on-year, and the order pipeline extending to 2027 guarantees sustained momentum. NH Investment & Securities raised its target price to 300,000 won. Despite appearing expensive, the AI-driven demand and supply tightness justify a higher valuation premium.
Hyundai Motor bottom-fishing with technical confirmation.
Hyundai Motor has fallen to a key bottom support level after a drawdown driven by an expected -1% YoY operating profit in Q2 and supply disruptions. However, H2 catalysts are strong: the won staying above 1,500, European IONIQ 3 launch, and domestic new model refreshes (Grandeur, Avante, Santa Fe). The sector consensus sees a Q3 earnings turnaround. Technically, if this week's weekly candle forms a doji or hammer and holds the bottom, it becomes a high-conviction buy; a large bearish candle invalidates the setup.
US nuclear revival lifts KEPCO and Doosan Enerbility.
Nuclear and utility stocks are poised for a rebound. Korea Electric Power (KEPCO) is absurdly cheap — trading at a deep discount to 2026 estimated operating profit of 11 trillion won and 16 trillion won next year. Doosan Enerbility, while not cheap, is the primary Korean play on the accelerating US nuclear revival; the US government is fast-tracking supportive legislation and loan guarantees for large-scale nuclear projects. Both names benefit from the global energy infrastructure push.
Shipbuilding momentum returns in July.
Shipbuilding stocks are showing renewed buying interest and have strong momentum catalysts in July. Hanwha Ocean in particular is seeing good institutional buying. The sector is poised for a re-rating as new order expectations build and oversold conditions reverse.
Hanmi Pharm obesity muscle-loss data catalyst.
Hanmi Pharmaceutical holds a key data catalyst: whether its drug candidate can prevent muscle loss associated with GLP-1 weight-loss drugs. With the obesity treatment market exploding and muscle preservation a major unmet need, positive data would be a blockbuster signal. The market is intensely waiting for this readout.
DND Pharmatech out-licensing deal imminent.
DND Pharmatech is the biotech most intensely eyed for a near-term out-licensing deal. The market is eagerly anticipating a technology transfer agreement, and the company has built a strongly positive narrative. In an environment where Korean biotech needs license-out catalysts, DND stands at the center of expectation.
Olix Phase 3 readout in July.
Olix has a crucial Phase 3 clinical trial result coming in July for a major metabolic disease indication. The company has multiple technology-driven momentum points beyond just earnings, and the upcoming readout is a make-or-break event attracting heavy speculative interest.
Securities stocks cheap on high trading volumes.
Securities stocks are set to ride the market recovery. Trading volumes have been massive even during selloffs, generating huge brokerage income. PBR bands are attractive and many names have pulled back significantly from recent highs. As the market trajectory turns higher into earnings season and the second half, these stocks are well-positioned to outperform, with Korea Investment Holdings, Mirae Asset, and NH Investment & Securities as key picks.
Battery down-cycle ending, LG Energy Solution leads.
The secondary battery sector's down-cycle is ending. Multiple data points confirm a bottom: Tesla sales are surging (doubled year-on-year in Korea), ESS demand is strong while qualifying capex is severely constrained, creating a semiconductor-like structural tightness. Consensus earnings for LG Energy Solution and SDI are beginning to be revised up even as stock prices have fallen. LG Energy Solution is the top pick within the sector.
Hanall Biopharma to catch up on partner rally.
Hanall Biopharma's collaborator Immunovant is soaring, yet Hanall's stock has lagged significantly. Hanall has the same partnership exposure and should logically catch up given the identical thematic tailwind. This creates a relative value opportunity within the biotech space.
K-beauty exports surge, lifting APR and peers.
Cosmetics export momentum is extremely strong, especially in Europe. Export data for names like APR is blowing past expectations, and the global K-beauty wave is translating into tangible earnings. The sector is a pure export play benefiting from high FX rates and surging global demand, and it has been included in the July strategy portfolio.
Up Next
This 3PRO TV (삼프로TV) video, published July 01, 2026, features Park Ji-hoon discussing 010120.KS, 267260.KS, 068270.KS, 009150.KS, 005380.KS, 015760.KS, 034020.KS, 042660.KS, 128940.KS, 092780.KQ, 226950.KQ, 071050.KS, 006800.KS, 005940.KS, 373220.KS, 009420.KS, APR. 13 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Park Ji-hoon · Tickers: 010120.KS, 267260.KS, 068270.KS, 009150.KS, 005380.KS, 015760.KS, 034020.KS, 042660.KS, 128940.KS, 092780.KQ, 226950.KQ, 071050.KS, 006800.KS, 005940.KS, 373220.KS, 009420.KS, APR