Secondary Battery Rebound Has Begun, Will Become Market Leader

CEO Han Gyu-soo emphasized that the recent rebound in secondary battery stocks should not be seen as a mere technical rebound. He analyzed that not only is the supply and demand for individual stocks improving, but the overall market trend is also shifting upwards. He explained that this is an important signal for investors to closely monitor changes in the market.

CEO Han Gyu-soo stressed the importance of a preemptive buying strategy based on fundamentals rather than chasing market prices when investing. Citing cases where Samsung SDI and POSCO Future M recorded new highs, he pointed out that buying late after prices have already risen should be avoided. He advised that understanding a company's intrinsic value and investing preemptively will bring the best results.

Regarding the phenomenon where foreign buying steadily flows into major securities stocks like Korea Investment Holdings and Kiwoom Securities, yet stock prices remain stagnant, CEO Han Gyu-soo stated that he understands investors' anxiety. However, he mentioned that the continuous net buying by foreigners is positive, and it is important to maintain a portfolio focused on market-leading stocks.

In the case of the power equipment theme, stock prices tend to fluctuate in the short term depending on former President Trump's remarks. CEO Han Gyu-soo emphasized that while such political statements can provide short-term momentum, in the mid- to long-term perspective, corporate fundamentals—that is, performance and growth potential—must support them.

CEO Han Gyu-soo analyzed that Nvidia's upward revision of its 2028 revenue forecast by more than 70% is noteworthy. He explained that this suggests that while revenue was constrained by semiconductor supply limitations, the overall semiconductor industry trend itself remains positive.

CEO Han Gyu-soo diagnosed that the current KOSPI index's recovery of both the 120-day line and the 5-day moving average, and its stabilization above the 5-day moving average, signifies that the market's upward trend has revived. This is interpreted as a technical signal indicating a positive shift in the overall market flow.

CEO Han Gyu-soo judged that while current inflation is higher than expected, it is not high enough to warrant an interest rate hike. He believes that even if rates are not cut, the possibility of further hikes is low. Furthermore, he analyzed that geopolitical risks like the Iran war have transitioned to economic sanctions, making further escalation unlikely. In conclusion, he reassured investors by diagnosing that there are no particularly noteworthy negative factors in the market currently.

Believing that the market is likely to gain momentum, CEO Han Gyu-soo advised strengthening the low-price buying strategy. He emphasized building a portfolio mainly around growth stocks and foreign-preferred stocks, and approaching the market calmly and patiently.

CEO Han Gyu-soo suggested compressing investment portfolios into three sectors: secondary batteries, securities stocks, and semiconductors. He projected that while cosmetics, insurance, and food and beverages might have upward trends, there's a burden of chasing prices, and bank stocks' upward momentum will slow with the fading of interest rate hike factors. Considering safety and certainty, he explained that these three sectors are the most effective approach.

In the case of nuclear power stocks, CEO Han Gyu-soo analyzed that they move on expectations for one-off catalysts such as the acquisition of Westinghouse shares, but the timing of these catalysts is uncertain and there's a high possibility of correction. He advised that focusing on clear market leaders is a more efficient investment strategy than waiting for uncertain catalysts, thus excluding nuclear power stocks from investment targets.

While acknowledging that power equipment related stocks surged due to former President Trump's remarks on regulating Chinese power equipment, CEO Han Gyu-soo assessed that such information was already known in the market and largely reflected in stock prices. He interpreted it as a technical rebound, not forgetting to warn against further chasing purchases. He noted that while earnings expectations remain valid, they have largely been priced into the stock already.

CEO Han Gyu-soo diagnosed that large semiconductor stocks like Samsung Electronics are undergoing a dull period of adjustment with technical sideways movement. Although individual investor sentiment is dampened by the absence of foreign and institutional buying, he analyzed that they remain absolutely undervalued at P/E ratios of 3-4 times, with lingering earnings expectations, and thus have the potential to surge at any moment. He added that investors need to wait patiently and respond accordingly.

CEO Han Gyu-soo emphasized that securities stocks are currently absolutely undervalued, and investors should pay attention to the strong and continuous foreign buying as the stock market is likely to recover. He predicted that an upward reversal is possible with institutional inflow and positive momentum.

Despite former President Trump's outspoken remarks towards other countries, CEO Han Gyu-soo analyzed that the economic structures of Korea and the US are bound to become even more intertwined. In particular, the role of Korean companies in semiconductors, secondary batteries, nuclear power, defense, and shipbuilding is essential for reviving America's weakened manufacturing industry. Therefore, he predicted that even if a Trump administration takes office again, the revival of US manufacturing would be impossible without Korea.

CEO Han Gyu-soo reiterated that the rebound in secondary batteries is not a temporary technical rebound but is based on fundamentals. He predicted that in the long term, secondary batteries are highly likely to lead a massive rally, surpassing the semiconductor market, citing their expandability into various fields such as ESS (Energy Storage Systems), all-solid-state batteries, and humanoids. He presented a strong vision that secondary batteries will be the core driving force of the future market.

CEO Han Gyu-soo advised refraining from aggressive buying during periods of sharp increases in secondary battery stocks and instead using corrections to formulate buying strategies. He emphasized that as today's surge might lead to reduced momentum tomorrow, a portfolio should be built around leading stocks, but approached cautiously.