Naver Aims for 20 Trillion Won in Sales with AI Investment

Bond market volatility intensified, with the U.S. 10-year Treasury yield exceeding 5.3% and the 30-year yield reaching a 24-year high.

Conversely, the U.S. market's volatility index remained around 20, and the Nasdaq and S&P 500 reached new highs, showing a contrasting trend in the stock market.

The robust growth of the real economy in the U.S. is a key reason for maintaining high interest rates. Investing remains valid if AI companies with overwhelming profit growth and cash reserves that can offset interest rate burdens are selected.

AI companies possess the fundamentals to overcome a high-interest rate environment, thanks to their overwhelming profit growth and abundant cash reserves, making continued investment necessary.

If the trend favoring large-cap stocks extends to small-cap stocks and shareholder return policies are strengthened, the domestic stock market will become an attractive investment destination.

The extent to which the company discloses shareholder return policies and treasury stock policies, as expected by the market, in its earnings announcement at the end of this month, will be a crucial variable for the stock price.

According to recent industry insiders, LTA (Long-Term Agreement) conditions are becoming favorable for Samsung Electronics and Hynix, which is expected to positively impact future earnings.

The market expects earnings to exceed 110 trillion won based on product price increases, while some predict a downward adjustment of 10-15 trillion won, showing divided earnings forecasts.

While some raise the possibility of a downward adjustment of around 10 to 15 trillion won, others suggest the possibility of exceeding 110 trillion won due to product price increases.

The market's average expectation is around 105 trillion won, making this earnings announcement a crucial variable.

Hedge fund supply and demand and corporate bond issuance demand are exerting upward pressure on interest rates, rendering the past formula of falling oil prices leading to interest rate cuts ineffective.

Hedge fund supply and demand and corporate bond issuance demand act as upward pressure on interest rates. The absence of major buyers for U.S. Treasury bonds and the burden of the 10-year Treasury yield at 5.3% are analyzed as factors limiting interest rate declines.

The power equipment market is being restructured from government-centric to direct orders from hyperscalers. Google recently signed a long-term contract to receive SMR power from Constellation Energy for 20 years. The intensifying power shortage is widening the disparity between related companies' earnings and stock prices.

This indicates a shift towards power equipment companies receiving direct orders from hyperscalers rather than governments, raising interest in the widening disparity between the earnings and stock prices of power equipment stocks amidst intensifying power shortages.

Cosmetics export data continues its upward trend, defying concerns about a Q3-Q4 off-season. Cosmax is expected to achieve earnings 14% higher than market expectations, as increased overseas sales volumes in China, the U.S., and Thailand offset negative exchange rate effects.

This is because, due to the nature of ODM (Original Development Manufacturing), growth in overseas sales volumes in China, the U.S., and Thailand is offsetting the negative effects of exchange rates.

Despite Q3 and Q4 being classified as seasonal off-peak periods, cosmetics export data consistently maintains an upward trend, indicating a positive trajectory.

Amorepacific, having overcome the seasonality risk of cosmetics through quarterly earnings improvement and expanded overseas export volumes, has secured 50-100% upside potential in its stock price from a medium-term perspective. As quarterly earnings show clear improvement, a 50-100% upside potential exists in the future.

Amorepacific is expected to overcome the seasonality risk of the cosmetics industry through quarterly earnings improvement and expanded overseas export volumes, with a 50-100% or more upside expected from a medium-term perspective.

Within these changes, Cafe24 is being mentioned as a beneficiary of MetaMuse, and CJ Logistics is also likely to benefit through its logistics fulfillment business.

The ripple effect of MetaMuse's launch on the domestic distribution and advertising markets is expected to continue expanding in the future.

Naver is set to begin full-scale data center construction in November, following the completion of its rights offering in October.

Starting with AI factory sales in 2028, and with data center construction completed by 2029-2030, the company aims for 20 trillion won in sales and 3 trillion won in operating profit.

Naver plans to continue aggressive investments, strengthening its competitiveness as a native AI-related NeoCloud operator.

With policy volatility remaining after the U.S. midterm elections on November 3rd, secondary battery material stocks are facing increased valuation pressure as lithium carbonate prices continue to decline.

This demonstrates the disparity between the valuation of secondary battery material stocks and raw material prices, and policy volatility following the midterm election results on November 3rd is also expected to impact the market.

The market anticipates that lithium carbonate prices may rebound by the end of this year or early next year, making continuous monitoring of price trends crucial.

Among these, Hanyang Digitech is expected to be the biggest beneficiary by securing over 1 trillion won in volume, and SFA and Dreamtech are also anticipated to secure approximately 400 billion won each.

The possibility is raised that the Chinese government might adjust the pace of humanoid robot deployment given its economic situation.

If China adjusts its robot deployment pace, a niche market could emerge for Korean robot companies, creating growth opportunities.

Furthermore, if U.S.-China relations worsen, the position of Korean companies within the U.S.-produced robot value chain could strengthen, positively impacting the K-robot industry.