This week's shareholder return measures are the largest ever announced by a listed company in Korea, drawing attention to investment strategies in the semiconductor and cosmetics sectors.
It is the largest shareholder return policy ever announced by a listed company in Korea, drawing the market's attention.
The company said it will carry out the measures over three months through November, and following the announcement, international credit rating agency S&P raised SK Hynix's credit rating.
It proves that the mRNA technology used to develop COVID-19 vaccines can also be successfully applied to cancer treatment.
The news had a positive effect across Korea's pharmaceutical and biotech sector, leading to strength in related stocks.
This effectively shifted funds away from interest-bearing bonds toward risk assets like Bitcoin.
Indeed, about 1 trillion won in net inflows came into spot Bitcoin ETFs over four days, supporting the rebound in the crypto market.
President Trump met with cryptocurrency industry figures such as Coinbase and Ripple at the White House and urged the swift passage of the CLARITY Act. The bill clearly distinguishes whether crypto assets are securities or commodities, and is expected to help resolve market uncertainty.
A U.S. Senate vote is expected on the 15th of next month, and interest in stablecoin and payment-related stocks is rising.
The analysis holds that SK Hynix remains undervalued, and that improving earnings could lead to further share price gains.
If the share price rises on the back of profitability, there is room for it to attempt its previous high.
Based on 12-month forward price-to-earnings ratios (PER), Samsung Electronics stands at 4.6x and SK Hynix at 4.1x. By the standards of overseas investment banks, these companies may still be judged undervalued.
Whether their earnings growth continues is expected to be a key factor in valuation re-rating.
Analysts say Nvidia's earnings have had a somewhat weaker influence on the domestic semiconductor market since the fourth quarter of last year. With Nvidia's share price stalling around $200, the market is now focusing more on each chip company's own fundamentals than on Nvidia's results.
With Nvidia's cash and equivalents exceeding $100 million and its free cash flow reaching roughly $420 billion, whether data center revenue growth and a 75% gross margin are achieved in the second quarter will be the key to its future share price direction.
Samsung Electronics is reported to have raised foundry prices for its 4nm to 8nm processes by up to 15%. Related stocks such as AD Technology and Gaonchips are moving in response.
However, until the turn to profitability in the foundry business is officially confirmed, the view is that buying Samsung Electronics and SK Hynix shares on dips and waiting is a better strategy than chasing related stocks.
Since discussions of HBM (high-bandwidth memory) began in 2024, memory semiconductors have been moving more strongly than non-memory chips. Samsung's foundry utilization currently stands in the 80% range and is expected to reach 100% by year-end.
Whether the share of AI and HPC (high-performance computing) revenue expands is expected to be a key factor in strategy for a memory-centered semiconductor market.
Naver's quarterly operating profit is currently stalled in the 500 billion won range. However, revenue recognition from its AI factory business is expected to start next year, drawing interest in whether it can break out of this stagnation.
The AI factory is expected to secure additional revenue streams for Naver beyond search and shopping sales.
If it escapes the stagnation of quarterly operating profit in the 500 billion won range, it could become an important momentum for share price gains.
These companies are building their presence in the market by expanding sales in North America and Europe.
Cosmetics exports reached $4.6 billion through May, closing in on France's $5 billion, and there is a possibility that basic and color cosmetics exports could overtake France around September to October.
Increased work from export growth is expected to continue into the third and fourth quarters.
As a result, Cosmax, Cosmecca Korea, and Jenic are maintaining steady gains. However, some argue that investors should be cautious about Kolmar Korea due to concerns over a shrinking share of sun care product sales in the third quarter.
The basis for the reversal in sentiment toward the cosmetics sector can be found in Q2 earnings that met or exceeded market expectations. Through this earnings release, the outlook on the cosmetics sector has turned more positive.
In particular, the analysis calls for attention to cosmetics and beauty device stocks turning up from the bottom, including PharmaResearch, Amorepacific, and LG H&H.
The success of the mRNA cancer vaccine trials by Merck (MSD) and Moderna had a major impact on the pharmaceutical and biotech market. Alteogen has a connection to Merck, but currently Moderna's share price strength is more pronounced.
However, given the decline in KOSDAQ trading volume and supply-demand conditions, it is judged that the strength in pharma and biotech stocks will be hard to sustain.
Despite Alteogen's influence as the largest company on KOSDAQ by market cap, the key is to confirm whether the rally can continue given the overall limits on trading volume.
Answers come from the transcript, with the exact spot cited.
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