From SK Hynix's 40 Trillion Won Buyback to Justem's 10x Growth by 2027…Beneficiary Stocks Revealed

SK Hynix decided to repurchase and cancel 40 trillion won in shares. Manager Jo Ki-jun evaluated it as "a situation where Chairman Chey Tae-won's strong will is clearly evident."

This is the first time in Hynix's history. With operating profit of 70-97 trillion won and net profit exceeding 110 trillion won through Q2, the company has sufficient capacity. The buyback will proceed over three months, with potential to take advantage of stock price declines.

The scale differs from Samsung Electronics' share buyback history. Samsung's buybacks in 2015 and 2017 were each 10-11 trillion won, but Hynix is now investing 40 trillion at once. While Samsung purchased at low prices of 60,000-100,000 won per share back then, semiconductor companies today purchasing at high prices of 250,000-300,000 won per share demonstrates strong resolve.

SK Hynix can execute the share buyback due to strong cash reserves in Q3. The company has secured operating profit of 70-97 trillion won and net profit exceeding 110 trillion won through Q2.

Manager Jo explained, "With 110 trillion in short-term net profit, if the short-term reaches the 110 trillion range, we can certainly spend around 40 trillion." Even using 40 trillion of the 110 trillion net profit poses no problem for company operations.

SK Hynix's 40 trillion won is on a different scale compared to Samsung Electronics' share buyback history. Samsung repurchased 10-11 trillion won at a time in 2015 and 2017, but now it has expanded to 40 trillion, four times larger.

Manager Jo pointed out, "Purchasing 10 trillion at 60,000 or 100,000 won per share differs from purchasing 10 trillion at 250,000 or 300,000 won today, and Hynix is doing share buybacks for the first time ever but boldly spent 40 trillion." Past buybacks at low prices and current buybacks at high prices reflect different intentions. That Hynix is pursuing share buybacks for the first time while investing such a large amount demonstrates strong resolve to support the stock price.

Manager Jo presented SK Hynix's target price as the upper end of the 2 million-2.2 million won box range. He anticipates stock price support effects from the share buyback.

Additionally, beyond SK Hynix, Samsung Electronics also has potential for additional share buybacks. Manager Jo emphasized, "By year-end this year, the stock won't fall below 250,000 won. After that, Hynix also won't go below 1.6 million won. 1.5 million won is a complete bottom."

Chinese humanoid robot company Unitree's IPO is viewed as a headwind for Korean robot stocks. Unitree listed with an IPO price of 1,100 yuan (approximately 93 trillion won), and Chinese robot stocks fell to the daily limit after the listing.

Manager Jo stated definitively, "With Unitree, there's no reason for Korean robot stocks to rise. If they fall, they fall. I'll tell you it's bad news." While Unitree in China continues technological innovations like running robots and jumping robots, Korean companies tend to focus on stock price support rather than robot development.

Korean robot stocks lack upside opportunities as they fail to match China's pace of technological advancement, with only downside expected.

Manager Jo emphasized the psychological effect the share buyback policy will bring. Samsung Electronics won't fall below 250,000 won by year-end, and SK Hynix won't drop below 1.6 million won, he argued.

He specifically described SK Hynix's 1.5 million won level as "a complete bottom," suggesting limited downside. Additional gains are also expected from the share cancellation policy.

Weak won means losses for existing U.S. stock investors. Manager Jo explained, "Those who bought U.S. stocks here are losing money. Currently down 10%. It's a loss zone if it drops from the 1,300 won range."

In the past, exchange gains from a weaker won increased U.S. stock investment returns, but that structure is now reversing. The won has fallen from the 1,300 range and isn't recovering, with foreign ADR issuance inflow presumed as the cause. Manager Jo predicted the won would quickly decline to the mid-to-lower 1,300 range.

The Federal Reserve's interest rate hike plan is limited. Manager Jo said, "The Fed's dot plot shows no hikes beyond one rate increase." Additional hikes are only considered if inflation accelerates.

This means future market turbulence from bond rate increases will be limited. If rate hikes are constrained, pressure on tech stocks and high-growth stocks may ease.

Alteogen maintained positive returns even as Kosdaq continued declining. Manager Jo explained, "Alteogen went positive. So now after a few days of adjustment, it's in rebound position. That means foreigners and institutions aren't selling Alteogen."

Foreign and institutional investors not selling Alteogen signals limited further downside. The biotech sector is viewed as being in rebound position after adjustment.

The secondary battery sector is also viewed as near bottom. Manager Jo explained, "LNF also held 100,000 won. If we wait a bit, it will hit 100% gains. LNF is now positioned where 100% gains are possible from the profit bottom."

LNF is positioned for 100% gains from the profit bottom. Samsung SDI's uptrend is also positive, and SK Innovation shows strong moves on rising oil prices.

Justec is a company with ultra-precision small robot technology. Manager Jo evaluated, "Justec now has an IPO price of 12,500 won, so we see Justec as the best company now."

Justec holds a unique position in Korea for linear robot technology. It possesses vibration-free systems, cooling systems, and non-contact technology, which are strengths since vibration control is an essential requirement in semiconductor plants.

Justec's strength lies in ultra-precision motion technology. Manager Jo explained, "They have ultra-precision motion technology. From the dies of this motion technology to these systems, Justec is a company that can make everything."

The differentiator is technology that uses magnetic principles to prevent vibration. It's positioned where time-series spread is possible after the IPO, and Justec may achieve time-series spread even when other robot stocks weaken.

Justem is a company expected to achieve dramatic growth. Manager Jo introduced it, "Operating profit will grow 10 times by 2027. SK Securities published a report. They presented a target price of 27,000 won."

Justem currently records operating profit of 4 billion won in Q1 and 13 billion won on a half-year basis. Based on this, SK Securities forecast 10x growth by 2027 and set a target price of 27,000 won. The company is selling second-generation nitrogen purge products and is also preparing third-generation development.

Justem is a company specializing in semiconductor process nitrogen purge and humidity control solutions. Manager Jo explained, "You can think of it as a company that deals with nitrogen purge. It's a humidity control company."

The company currently depends on Micron for 50% of sales. SK Hynix and Samsung Electronics are also promoting second-generation product adoption, and the company has already secured overseas customers with first-generation products.

Justem's next growth driver is customer diversification. Manager Jo disclosed, "Beyond the first generation, Micron accounts for 50% now. Both Hynix and Samsung Electronics are also saying let's adopt quickly."

While Micron currently accounts for 50% of sales, SK Hynix and Samsung Electronics are reviewing second-generation product adoption. Third-generation development is planned, and customer diversification could enable rapid revenue growth.

Jo Ki-jun Channel is running a special promotion through Monday next week (8/24). Manager Jo announced, "Through Monday next week, you can get three months for 1.76 million won from two months plus one month."

At a discounted price below regular rates, the 3-month membership is offered at 1.76 million won. Inquiries are available at 1588-0648 or 02-3490-4456.