September Stock Market: Differentiated Performance by Stock… Focus on Nuclear Power, Bio, and Individual Semiconductor Stocks

Analysis suggests that a significant rise in the index is unlikely in the September stock market. The market is expected to show differentiated movements among individual stocks within a boxed range. Therefore, investors should approach the market with a strategy focusing on individual stocks rather than overall index movements.

It was suggested that the upward trend for Samsung Electronics and SK Hynix would be moderate, and unlike in the past, their upward momentum might decrease. Therefore, expert Lee Hyo-geun stated that portfolio management should focus on general individual stocks rather than large-cap stocks like Samsung Electronics and SK Hynix.

Nuclear power-related stocks are showing signs of an upward trend after a long period of stagnation. Although the chart pattern is not yet smooth, analysis indicates that they have already started to move. Cases of sharp rises in some stocks, such as KEPCO E&C, were also mentioned.

Recently, the bio and robot sectors were sharing supply and demand, but currently, the bio sector appears to have an advantage. While the robot sector's upward momentum has slowed due to delays in listing, the bio sector continues to show strength, boosted by the Moderna cancer vaccine issue. It was emphasized that attention should be paid to RNA and anti-cancer drug-related stocks in particular.

The background behind the faster-than-expected movement of nuclear power stocks was a report about rumored restrictions on acquiring Westinghouse's stake. Expert Lee Hyo-geun explained that while he initially expected movement around September, the report led to an earlier surge. Trump's remarks on increasing AI power demand, the US Department of Energy's loans supporting the nuclear power supply chain, and expectations of job creation ahead of major events and midterm elections concentrated from September to November are driving the rise in nuclear power stocks.

The Korean government is expected to invest 350 billion dollars in the US, with specific discussions on nuclear power projects likely in September. This is anticipated to serve as a foundation for expanding nuclear power construction and technological cooperation through a partnership with Westinghouse, and promoting a Team Korea strategy for entering the European market.

Major nuclear power-related events are concentrated from September to November. 5 to 7 new nuclear power plant orders are expected to begin, and the IPO of Holtec, a leading US nuclear power company, is scheduled for September and October. Holtec plans to immediately commence its SMR (Small Modular Reactor) business with the funds secured from the IPO. Events related to the US midterm elections are also concentrated during this period.

The traditional nuclear power project bidding process involved design and licensing completion, followed by investment confirmation and equipment orders. However, the revised process will see orders preferentially placed with partner companies upon design and licensing completion, with investment confirmation following thereafter. Expert Lee Hyo-geun predicted that this change in order would accelerate business momentum significantly.

Stocks classified as leading stocks can generally expect high returns of 70-80% during a surge. In contrast, the gains of peripheral stocks tend to be limited to 10-15%. Therefore, expert Lee Hyo-geun recommended rebalancing portfolios to focus on leading stocks to quickly recover losses.

HanmiGlobal is a high-tech construction company strong in building semiconductor fabs and data centers, and also competitive in the Middle East construction market. Against this backdrop, it is gaining attention as a beneficiary of AI infrastructure construction and the nuclear power value chain.

Nvidia's stock price recently declined ahead of its earnings announcement, but it shows potential for a sharp rise if earnings support it. There have been instances of stock price drops before and after earnings announcements in the past, and the possibility of a correction due to the dissipation of catalysts at the time of earnings release was mentioned. Indeed, the stock price fell after earnings announcements in 6 out of the last 8 quarters.

The semiconductor industry's growth engine is now shifting from price (P) to volume (Q). Analysis suggests that the point has been reached where expansion can no longer be delayed. Discussions about expansion, which were cautious due to past order cancellations, are now changing, and stock price increases will only be possible if growth that surpasses interest rates can be secured.

The rising stock price of Nepes is drawing attention. Expert Lee Hyo-geun mentioned his past experience recommending Daeduck Electronics at 20,000 won and realizing profits up to 100,000 won, emphasizing that Nepes could also surpass its short-term target of 100,000 won and rise further to 200,000 won.

The KOSDAQ market's earnings growth rate is projected to be higher than KOSPI's next year. KOSDAQ's growth rate for next year is expected to surpass KOSPI's operating profit forecast by 38%, and the semiconductor materials, components, and equipment (SoBuJang) cycle is anticipated to fully begin in the second half, necessitating close monitoring of related stocks.

TLB is attracting attention due to its strong connection with SoCem technology led by Nvidia's Jensen Huang. Following Simmtech, TLB is predicted to drive earnings growth next year, and its performance is expected to improve further if SoCem technology's proportion increases next year.

If the US 10-year Treasury yield stabilizes downwards from 4.6% to 4.5%, and then 4.4%, a rebound in the bio sector could occur. Therefore, a strategy of approaching the bio sector while monitoring interest rate trends was suggested.