Investment Strategy: Sobujang vs. Samsung Electronics and SK Hynix

While U.S. semiconductor stocks such as Micron and SanDisk approach record highs, SK Hynix's stock price movement appears somewhat stagnant. CEO Yoo Chang-hee stated that he mechanically sold Samsung Electronics because the market's pace of rise was faster than expected.

With U.S. semiconductor stocks like Micron and SanDisk nearing record highs while SK Hynix's short-term price movement hesitates, the market's rapid rise exceeding expectations served as the backdrop for the sell decision.

Using funds from the Samsung Electronics sale, he bought nuclear power-related stock Doosan Enerbility, newly adding it to the portfolio.

With the possibility of limited index upside in mind, he turned attention to energy-related value chains such as AI data centers, a move to prepare for the possibility that the energy sector would rise alongside any further gains.

CEO Yoo Chang-hee raised doubts about whether Samsung Electronics would quickly surpass 280,000 won and 290,000 won.

While global competitors such as Micron Technology approach record highs, SK Hynix—Korea's semiconductor leader—shows hesitant movement, suggesting a conservative view should be maintained considering the potential differentiation between the U.S. and Korean markets.

This divergence calls for a cautious approach to further upside momentum in the domestic semiconductor sector.

As funds flowed into the semiconductor materials/components/equipment sector, it drove the stock index higher, but many stocks held by ordinary investors tended to decline instead.

Even in the KOSDAQ market, most stocks except for a few theme stocks such as quantum and security remained weak, and investors' frustration is growing due to corrections in major sectors such as secondary batteries and nuclear power.

U.S. investment results are becoming visible, including the decision on the Texas gas combined cycle power plant project. Doubts about funding for the joint purchase of a Westinghouse stake became the trigger for the nuclear power stock correction.

Uncertainty about who would buy the stake and how it would be funded acts as a factor heightening investor anxiety.

Large-cap corrections are a result of corporate choices rather than a 'sell-on' phenomenon, and it is a point where stock declines can be treated as buying opportunities.

Two domestic nuclear power sites were announced for the first time in 15-20 years, proving the necessity of nuclear construction, which is interpreted as a signal that other countries can also build more nuclear plants.

The adoption of Korea's APR1400 in this large U.S. nuclear project demonstrates the competitiveness of domestic nuclear technology.

In the nuclear business, where creating results through past operational data is important, Korea's participation is expected to achieve meaningful results.

Attention is focused on the market ahead of Micron's earnings announcement and Samsung Electronics' preliminary earnings release in early October.

Over the past three trading days, foreigners bought 2.9 trillion won of Samsung Electronics while simultaneously selling 2.3 trillion won of SK Hynix.

This is more likely interpreted as existing SK Hynix holdings being switched into Samsung Electronics rather than large-scale new funds flowing into the entire semiconductor sector.

Samsung Electronics' dividends and positive news factors appear to have influenced this buying.

Battery, solar, and electric vehicle sectors can react very sensitively to changes in U.S.-China relations.

Semiconductors can also see large stock volatility depending on whether restrictions on bringing Chinese equipment are eased; if equipment supply is allowed to a limited extent, Samsung Electronics and Hynix stock prices are expected to fall by at least 5%.

CEO Yoo Chang-hee judged that the nuclear power and shipbuilding sectors are relatively free from U.S.-China talk impacts, securing portfolio safety.

The U.S. market has diverse stocks such as the Magnificent 7 and various semiconductor types including Nvidia, Intel, AMD, and Broadcom.

On the other hand, the Korean market relies heavily on Samsung Electronics and SK Hynix, with the index rising around these companies to form 9,000 points.

Korea lacks semiconductor and CPU-related beneficiaries compared to the U.S., creating differences in market composition.

Rather than responding to day-to-day movements, a strategy of accumulating stocks over 2-3 weeks is effective. With the judgment that the macro environment is not bad, one should take a long view and build a portfolio.

After accumulation is complete, it is recommended to manage by not checking the account until year-end. A mindset of not being swayed by market movements for about two and a half months is needed.

He views the market positively after the midterm elections and assesses the possibility of oil breaking $100 as low. If oil price stability continues, the U.S. rate hikes are expected to end with one more.

Presenting the outlook that there will be no further rate hikes, and expecting market conditions to be positive until the November midterm elections.

This macroeconomic outlook forms an important basis for establishing investment strategy.

The October options expiration is likely to be an inflection point ending the box-range trend. Market direction is determined around expiration, and if it falls, it could rather be used as an active buying opportunity. After the current box-range movement, watch the October options expiration as a starting point, and seek active buying opportunities on declines.

The market direction is likely to be determined quickly after options expiration, whether up or down, but CEO Yoo Chang-hee currently sees the upside as somewhat more dominant.

If the market falls, he advised that it should rather be used as an active buying opportunity.

Semiconductor materials/components/equipment stocks can maximize returns on specific stocks, but have the disadvantage of high difficulty in stock analysis.

Samsung Electronics and SK Hynix have an advantage in relative safety, but returns may be lower than materials/components/equipment.

CEO Yoo Chang-hee advised that investors with high stock analysis capability should invest in materials/components/equipment, and if analysis is difficult, investing in Samsung Electronics or SK Hynix is appropriate.

When investing in materials/components/equipment, one should select companies with clear market share and high operating profit margins.

Despite the high-price burden, PSK Holdings is a competitive company with over 60-70% market share. If the materials/components/equipment sector continues to rise, substrate-related stocks such as TSE, Simmtech, and TLB have sufficient additional upside.

TSE maintains an uptrend despite volatility and shows potential to surpass 300,000 won.

The strength of Simmtech and TLB, which play essential roles in Korea's CPU industry structure, is expected to continue.

Samsung Electronics and SK Hynix, while having relatively lower returns on individual stocks, are advantageous for deploying large amounts of capital, allowing the overall investment amount to be increased.

On the other hand, materials/components/equipment stocks can expect high returns, but the risk of taking large positions is high, so careful fund management is needed.

In conclusion, CEO Yoo Chang-hee suggested that materials/components/equipment can generate higher returns if one can analyze stocks, but it is appropriate to choose Samsung Electronics and SK Hynix depending on the investor's disposition and ability to adjust position sizes.