Samsung Electronics and SK Hynix Buybacks Seen Improving Market Supply-Demand; Moderna's mRNA Cancer Treatment Nears Reality

CEO Yoo Chang-hee forecast that SK Hynix would announce buybacks of more than 40 trillion won, and that combined with Samsung Electronics the total could reach around 100 trillion won. Such large-scale buybacks are analyzed as a way to resolve the long-standing supply-demand problem in the Korean stock market, going beyond simple share price support. He also pointed out as a positive factor that foreign ownership is at a record low, so additional selling pressure is limited.

He judged that, with foreign ownership at a record low, the possibility of further large-scale selling is low. He also expected that because short interest is high, buybacks could trigger short covering and further improve supply-demand conditions.

CEO Yoo Chang-hee noted that if pension funds use this buyback opportunity to adjust their weightings in Samsung Electronics and SK Hynix, they could obtain an automatic rebalancing effect. This could address the shortfall in pension fund rebalancing that was lacking in the first half. He expected it to act as an important issue that goes beyond simply boosting or defending share prices and improves the supply-demand structure over the long term.

CEO Lee Geon-hee stressed that cancellation is as important as buybacks. He warned that buybacks alone may produce only a temporary share price rise, and that treasury shares not cancelled carry the potential risk of becoming major-shareholder selling or overhang supply when share prices later rise. He added that semiconductor materials and equipment companies also need to strengthen their shareholder return standards.

As big tech companies move to reduce their dependence on Nvidia, opportunities in the foundry market are growing, and he analyzed that, despite U.S. government support, Intel's ability to catch up with Samsung will be limited.

CEO Lee Geon-hee also recommended a bold buying strategy for growth stocks.

The outlook that Moderna could conquer cancer using mRNA technology is becoming a reality. As Moderna's ongoing Phase 3 trial nears completion, there are signs that mRNA technology could be developed into treatments for various cancer types. This is expected to be a pivotal turning point that brings about a change in the paradigm of cancer treatment.

Results have shown that Moderna's mRNA technology is markedly more effective when administered in combination with Keytruda. These results suggest that the growth of Alteogen's formulation technology could accompany the growth of Keytruda. Accordingly, Alteogen is evaluated as a company whose further growth potential should be kept open. The synergy is expected to grow as the cooperation between the two companies strengthens.

Discussion of the U.S. CLARITY Act has resurfaced, raising expectations for its passage. If the law passes, legal standards for electronic payments, which have been ambiguous, would become clear, and related business is expected to expand more actively. Accordingly, electronic payment stocks are showing strength, and positive outlooks dominate the market.

CEO Lee Geon-hee cited overwhelming transfer speed and lower fees than traditional banks as the greatest advantages of the new financial payment system. These advantages provide the foundation for building new growth models within financial infrastructure. As global big tech companies are actively investing in this area, major changes are expected.

This creates a dilemma between securing bank-centered safety and pursuing profitability through private participation. However, he expected domestic adoption to accelerate in line with global market trends and stressed that measures to secure safety are urgently needed.

CEO Lee Geon-hee advised that the payment sector is still in an early stage of the market, so observation is needed after entry. He presented a bold buying opinion, noting that many stocks have fallen 70 to 80% from their peaks. However, he added that it is important to approach with a strategy centered on companies with secured growth potential.

In the second quarter, 10 of 17 domestic battery materials companies posted operating losses, while LNF drew attention by alone returning to profit. LNF recorded second-quarter revenue of 885 billion won and operating profit of 20.8 billion won, showing a positive picture for the market. This improvement is analyzed as stemming from a 30% surge in sales at Tesla's Shanghai plant and the effect of its exclusive supply of high-nickel cathode materials.

LNF plans to establish a mass-production system of 60,000 tons of LFP for North America by the first quarter of next year. This is interpreted as a strategy to enter the LFP battery market in earnest. Attention is focused on whether LNF can emerge as a key company in the U.S. supply chain that reduces dependence on China, and it is expected to play an important role in future market changes.

IT Cen recorded 87% of its 8.8 trillion won in revenue last year at its subsidiary Webs, showing a stable earnings base. Webs operates precious metal distribution and digital platform businesses through Korea Gold Exchange and generates high profits. This shows that IT Cen's core business is growing steadily centered on its precious metals platform.

In particular, as the U.S. accounting standards body begins to recognize stablecoins as cash-equivalent assets, news has emerged that a won-denominated stablecoin linked to IT Cen will be introduced for game payments. This is expected to offer an opportunity to expand IT Cen's business areas and secure new growth drivers.

He judged that LNF is undergoing a period correction rather than a price correction. Accordingly, he expected that further gains could come up to the 13–133 thousand won range, which corresponds to the 120-day moving average.

CEO Lee Geon-hee noted that IT Cen tends to attract heavy chasing buys near the bottom, so he recommended waiting two to three days rather than buying immediately after a sharp rise. He explained that if the stock moves sideways for about three days on today's closing basis, it can be seen as a stage of absorbing supply. If a pullback comes, he advised a long-term staggered buying strategy rather than a short-term approach.