Foreign Buying Sends Hwashin Jeongong to Upper Limit… Market Direction Hinges on Samsung Electronics and SK hynix

Hwashin Jeongong is known as a company that manufactures automotive parts.

This reflects an institutional strategy of seeking investment opportunities across multiple industries rather than concentrating on a single sector.

Analysts argue that it is very difficult to generate returns today without AI, which sits at the center of the market. Although the domestic market is showing a rotation-driven trend, if Samsung Electronics and SK hynix fall below their recent lows again, even sectors and companies that performed well in rotation are expected to decline together. This underscores the absolute weight AI and semiconductors carry in the modern market.

The movements of these two stocks are expected to serve as important indicators determining the next inflection point in prices.

Therefore, when setting investment direction, it is important to closely watch the trends of these two stocks, and from a medium-to-long-term perspective, the view that buying is valid is being put forward.

Despite profit-taking in tech stocks caused by declines in the three major U.S. indices and burden from government bond yields, SK hynix's momentum remains positive.

For this, the continuity of foreign spot inflows will be the key variable, and investors should continuously check whether the direction of the futures market matches spot supply and demand.

SK hynix is expected to accelerate its share buyback and cancellation program worth roughly 40 trillion won. Based on projected free cash flow from 2025 through 2027, even excluding existing dividends, at least 90 trillion won could be used for shareholder returns. This is seen as a positive signal for enhancing SK hynix's shareholder value over the medium to long term.

It is currently in the process of checking whether it can produce robot parts and is looking for new opportunities in the robot industry based on its automotive parts technology.

Hyundai Motor's share price is currently uncertain as to whether it will fall or rise from the 400,000 won range, suggesting that buying opportunities in the robot sector still abound. Investor sentiment toward robot-related stocks is expected to be strongly influenced by Hyundai Motor's movements.

The robot field is expected to be the final beneficiary of the AI cycle, and automotive parts companies are actively being re-rated for their role in the robot industry.

If a robot ecosystem led by Hyundai Motor takes shape, integration synergies with related parts suppliers are expected to accelerate. This indicates that Hyundai Motor is establishing itself as a core player in the robot industry beyond being a simple automobile manufacturer.

This has stirred expectations that Sensorview is closely tied to the data center (DC) industry. Meaningful trading volume near the bottom has raised the possibility of re-rating, but analysts say a larger volume of block trades will be needed for a short-term price rise.

Sensorview's revenue has grown, but its operating profit has not increased as much as hoped. Therefore, it is important to track whether data center cable revenue can translate into operating profit improvement next quarter rather than this quarter. Substantive profit improvement will be the key factor in re-rating Sensorview's share price.

Sensorview has a range of positive momentum drivers, including defense, robotics, and AI data centers from Hanwha Systems. However, doubts have been raised about whether its core business is growing earnings. Expectations are high, but without backing from substantive profit improvement, the view emerged that at this point it is more appropriate to consider other stocks rather than new buying. When investing, it is necessary to carefully review earnings as well as momentum.

Even if geopolitical risks are resolved, given the uncertainty over when problems might arise again, Pan Ocean's earnings are expected to remain positive. Due to the ton-mile effect through the Strait of Hormuz and other straits, meaning ships stay at sea longer, second-quarter earnings were strong, and there is a very high likelihood that third-quarter earnings will surpass the current trading range. Charts also show the stock entering a zone breaking out of its trading range and resistance level, increasing expectations for further gains.

A sell opinion emerged that, given the high market volatility of the shipping industry, it is preferable to use the shipbuilding sector, a downstream industry, rather than the upstream shipping sector, as an opportunity to buy on dips. Analysts say it is time to focus on shipbuilding stocks, which are currently taking a breather.