Minimal Effect of US-China Summit, Semiconductors Remain Strong

During the Chuseok holiday, US and Japanese stock markets closed slightly bearish, but on Friday, the US market rose slightly and the Japanese market gained more than 1%, showing a positive trend.

This could be an opportunity for investors who reduced their stock holdings due to market concerns before the holiday, and it is analyzed that the domestic market is highly likely to start strong unless there are any major negative factors.

Experts evaluated the outcomes as being no different from the May agreement, citing a two-month delay in the trade agreement schedule and the return of pandas as the only concrete achievements.

It was mentioned that there is a risk that the US has not been able to control China's advancements in wireless technology, as the summit largely rehashed or reconfirmed unfulfilled points from the May agreement.

The trade truce has been extended for over two months, now lasting until January 10th. This is interpreted as a strategy by both countries to maintain friendly relations for the time being.

The market rebounded as it entered a phase where uncertainties were resolved. A positive market trend is emerging due to improved investor sentiment.

Unlike a situation where individual investors are heavily buying inverse products, major liquidity providers showed a trend towards market upside.

In particular, large-cap semiconductor stocks such as Samsung Electronics and SK Hynix, along with component/material stocks backed by improved performance, are expected to lead the market.

A phased buying strategy, expanding holdings to 25% around 500,000 won, is considered effective.

At the current stock price level, there is no reason to sell, and a phased buying strategy to increase the proportion to 25% around the 500,000 won price was suggested as effective.

SOOP recorded annual sales in the late 400 billion won range and operating profit around 120 billion won, but this fell short of market expectations.

Notably, a trend of decreasing operating profit from 21.2 billion won in Q1 to 12.6 billion won in Q2 has emerged, leading to a lack of aggressive buying by foreign and institutional investors.

Amid ongoing concerns about performance due to intensifying global platform competition, a short-term rebound target price of 43,000 won and a mid-term target price of 50,000 won were presented.

A rebound is expected for big tech companies like NVIDIA, Apple, and Micron, as well as Samsung Electronics and SK Hynix. Based on the upward trend in performance of front-end equipment stocks such as Tes, Wonik IPS, and PSK, a semiconductor super cycle is projected to unfold until 2028.

A rebound is expected for big tech companies like NVIDIA, Apple, and Micron, as well as Samsung Electronics and SK Hynix. The performance of front-end deposition equipment stocks such as Tes, Wonik IPS, and PSK is also projected to show an upward trend.

These expectations for improved semiconductor performance act as a positive factor in the long term.

SK Securities has lower stock elasticity compared to large brokerage firms and is not playing a leading role in the market, so its recovery is expected to take considerable time.

After surging due to a past SK Hynix treasury stock brokerage issue, it underwent a selling pressure digestion process. A rebound is possible if the KOSPI index breaks through the 8,000 mark, with a short-term target band around 2,600 won.

After confirming Q3 results, a strategy of holding with targets of 420,000 won (1st) and 470,000 won (2nd) is recommended.

After confirming the Q3 performance, a full recovery is expected from early next year, with initial rebound targets of 420,000 won and a second target of 470,000 won.

It was advised to hold with patience and adopt a buying strategy when it hits bottom and begins to rise.

After its stock price rose in the past due to government policy themes, profit-taking sales emerged, and recently, foreign selling pressure has continued.

While a rebound may occur, the target might not be significant, so it is advisable to consider a cash-out strategy during a rebound.

On the contrary, new liquidity is expected to flow in after the buyback ends, and the stock price is not expected to fall.

The Q3 performance, slated for announcement at the end of October, is projected to exceed 80 trillion won, and based on solid fundamentals, it has the potential to rise to 5 million won in the future.

Considering current performance and growth, the second target band can be set up to 2.4 million won, and since an upward trend is appearing from the bottom, it was advised to maintain a holding strategy in anticipation of further gains.

Since the current purchase price is around 320,000 won, a significant technical rebound could occur up to this line, so it was advised that holding with patience could lead to a recovery of the purchase price.

Therefore, it is advisable to maintain a holding strategy until the purchase price recovers.

With the increasing size of AI accelerators, the shortage of high-end ABF substrates is expected to continue until next year, making Daeduck Electronics a beneficiary. The effect of capacity expansion in Q2 next year is expected to translate into revenue, with yield recovery to around 95%.

The recent approximately 19% rise in Japanese Ibiden's stock price over two days confirms the strength of the industry, and this supply shortage is expected to persist.

Daeduck Electronics is expected to see the full effect of its capacity expansion from Q2 next year, translating into revenue. The scale of the expansion is also significant, and the yield is expected to recover to around 95%.

Increased demand and persistent supply shortages are expected to drive price increases and continued expectations for improved performance. Samsung Electronics is targeted to rise an additional 15% from its current price to 320,000 won.