Nuclear Power·Construction: Focus on US Partnerships

In the past, nuclear power and construction-related stocks tended to move based solely on news of orders, but now the investment trend has changed, making investment partnerships with the U.S. the most crucial consideration. In particular, how to build cooperative relationships with the U.S. from the early stages has become important. Park Jong-yeon, PB at KB Securities Myeongdong Star PB Center, emphasized, "It seems a bit different now. Since investment in the U.S. is the most crucial, we need to focus on how we can proceed with the U.S. from the very beginning."

From this perspective, it was explained that when approaching investment, it is advantageous to focus on Hyundai Engineering & Construction, which has EPC (Engineering, Procurement, and Construction) strengths, and Doosan Enerbility, which has a high relevance to the U.S. market.

It was suggested that nuclear power-related stocks might have high entry barriers when individual investors approach them from a trading perspective. In particular, an analysis found that large nuclear power stocks like KEPCO E&C are not easy for individual investors to access. Hwang Dae-geun, PB at Yu Hwa Securities Euljiro Branch, said, "As an individual investor, I think I considered what would be better from a trading perspective. Isn't the secondary battery sector easier to access? I suggested secondary batteries because they seem suitable for a staggered buying approach, dividing the investment."

He also pointed out that small-cap nuclear power stocks carry significant volatility risks and a constant threat of hitting the lower limit, which can be an even greater burden for individual investors.

Conversely, he proposed that the secondary battery sector is more suitable for individual investors from the perspective of staggered buying after about a week of adjustment, emphasizing its accessibility and advantages in risk management.

An analysis shows that current entertainment stock prices are significantly undervalued, undoubtedly offering high price attractiveness. However, PB Park Jong-yeon stated, "Entertainment stocks are cheap. It's certain that they are very cheap right now. (Omission) If we consider whether there is a necessity to buy entertainment stocks over companies like semiconductors, semiconductor materials/parts, or the aforementioned nuclear power, construction, and secondary batteries, honestly, there don't seem to be many triggers."

It was pointed out that compared to other growth sectors such as semiconductors, nuclear power, and secondary batteries, entertainment stocks lack strong factors to attract foreign or institutional investment. Furthermore, the absence of impactful growth drivers (narratives) that could significantly affect the market, such as a BTS comeback, suggests that there is little immediate need to buy entertainment stocks.

An analysis indicates that the Chinese entertainment market has significant potential, boasting a high annual growth rate of 20% and ranking as the fourth-largest globally. PB Hwang Dae-geun commented, "If you consider the China narrative, SM seems right. The Chinese entertainment market grew by 20% annually this time. (Omission) If discussions about lifting the Hallyu ban or similar arise, SM is definitely one to watch."

However, it was noted that domestic entertainment companies generally neglect stock price management and lack efforts to enhance shareholder value, which are areas needing improvement. Restoring shareholder trust is expected to significantly impact improving investor sentiment for entertainment stocks.

Especially if positive issues such as the lifting of the Hallyu ban occur, SM Entertainment, which has the highest proportion of sales in China, is expected to be the most promising investment.