An analysis suggests that the long-term boom in the memory industry and corporate shareholder return policies are intensifying the concentration on large-cap stocks, necessitating selective investment in other sectors like biotech.
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An analysis shows that recently, while the KOSDAQ index plummeted by nearly 5%, the KOSPI index maintained relative stability. Notably, within KOSPI, investor funds were concentrated primarily on just two stocks, Samsung Electronics and SK Hynix, rather than a broad rise across all stocks.
CEO Choi Hyun-deok emphasized that Samsung Electronics' 40 trillion won share buyback is merely the beginning, suggesting the possibility of further expansion in buying volume. He analyzed that the current memory industry is showing strong recovery despite macroeconomic uncertainties such as interest rate hikes.
CEO Choi Hyun-deok stressed the importance of selective investment within the biotech sector. He warned against highly volatile stocks that fluctuate based on specific data, such as Alteogen, and recommended shifting investment focus to Samsung Electronics and SK Hynix instead. He pointed out the risks of biotech stocks with severe price fluctuations dependent on a single piece of data.
An analysis concluded that the long-term growth potential of memory companies has been clearly confirmed through shareholder return policies. CEO Choi Hyun-deok stated that by announcing 파격적인 (unprecedented) shareholder return policies while also making large-scale facility investments, Samsung Electronics and SK Hynix have proven with money that the current boom is not temporary but sustainable growth.
Samsung Electronics' share buyback is proceeding at a very rapid pace, with an estimated purchase of over 1 trillion won in shares daily. Consequently, the 40 trillion won share buyback is expected to be completed by early October. CEO Choi Hyun-deok predicted that after the buyback concludes, additional shareholder return measures are highly likely to be announced along with the third-quarter earnings report.
Samsung Electronics is expected to focus more on increasing dividends rather than share buybacks. This is attributed to limitations on share cancellation due to the principle of separation of banking and commerce. CEO Choi Hyun-deok stated that it is crucial for Samsung Electronics to expand its regular dividend amount, rather than one-time special dividends, to secure competitiveness in shareholder return policies compared to SK Hynix.
Samsung Electronics is reportedly changing its original plan to build four foundry fabs in Honam, expanding to a total of six. This is attributed to the explosive increase in foundry demand and is interpreted as crucial evidence supporting the long-term boom in memory demand. The decision to expand, usually made cautiously considering facility maintenance costs, reflects the strong current market demand.
Micron announced plans to invest $10 billion in R&D over 10 years and will establish a memory R&D center in Virginia, USA. This large-scale investment signifies that the memory industry is elevating beyond simple commodity components to strategic infrastructure for the AI era. CEO Choi Hyun-deok analyzed that these moves prove the long-term growth of the memory industry and indicate that it will not be a short-term cycle.
Leverage financing costs in the semiconductor industry have plummeted from 1,000 basis points (BP) in June to 150-300 BP currently. This roughly sevenfold reduction indicates a significant improvement in market financing conditions. CEO Choi Hyun-deok analyzed that this drop in leverage financing costs portends increased market activity and a greater likelihood of leverage-driven buying. This is interpreted as a positive signal that the semiconductor industry has passed its bottom and could gain upward momentum.
Breaking news announced that Samsung Electronics has unveiled a total shareholder return policy amounting to 110 trillion won, including 30 trillion won in cash dividends over three years. Additional shareholder return measures are currently under review. CEO Choi Hyun-deok predicted that this large-scale shareholder return policy will resolve market uncertainties and have a positive impact.
The government is pushing for an exemption from the preliminary feasibility study (pre-F/S) to expedite the creation of the Honam semiconductor industrial complex. CEO Choi Hyun-deok explained that the pre-F/S exemption reflects the will to accelerate project progress and hasten the establishment of the semiconductor cluster.
Naver Cloud's business revenue is expected to become tangible. CEO Choi Hyun-deok stated that Naver Cloud revenue is projected to reach 1.3 trillion won starting next year, with specific forecasts indicating growth to 12 trillion won by 2030.
Regarding the news that Alteogen is investing 250 billion won in a new factory, CEO Choi Hyun-deok gave a positive assessment. He stated that Alteogen is internalizing production for already commercialized drugs like Keytruda, and as a result, milestone inflows are confirmed starting from the third quarter. This is interpreted as an indicator of stable revenue generation and growth potential.
CEO Choi Hyun-deok emphasized caution regarding biotech stocks with uncertain investment returns and lengthy development times. He argued that investment in existing clinical companies like 3Chungdang Pharm, TissueGene, and Factron should be avoided, and advised focusing investment on promising biotech stocks with high potential for growth.
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