Manager Lee Hyo-geun: “Now is the Time to Focus on Nuclear Power and Batteries”

Manager Lee Hyo-geun believes the current market has already entered an uptrend. However, he added that the pace of the rise might be adjusted. He analyzed that the recently announced Consumer Price Index (CPI) and the upcoming Federal Open Market Committee (FOMC) interest rate hike are more likely to be positive news for the market rather than negative. Manager Lee expects a growth stock-centric market to unfold even in a high-interest rate environment.

DL E&C was identified as a key construction company that could benefit from U.S. investments. Lee Hyo-geun explained that DL E&C has extensive experience in constructing liquefied natural gas (LNG) combined cycle power plants, offering opportunities in Texas LNG combined power generation projects. He added that DL E&C has also entered the nuclear power sector by making equity investments in small modular reactor (SMR) related companies, expecting related benefits.

Lee Hyo-geun analyzed that supply shortages due to the destruction of Russian refinery facilities are contributing to higher margins for refiners. He expects the high-margin trend for refiners to continue until the first half of next year and anticipates stock price increases based on fundamental improvements rather than sharp oil price surges.

Lee Hyo-geun emphasized that the period from September to November is crucial for focusing on the nuclear power sector, as momentum related to nuclear power concentrates during this time. He identified shipbuilding, nuclear power, and LNG as the core of large-scale U.S. investment projects, with nuclear power playing a significant role. In particular, he expects the U.S. Trump administration's strengthening policy support for nuclear power to positively impact domestic nuclear power companies.

Lee Hyo-geun evaluated Doosan Enerbility as holding a central position in the current U.S. investment event and having significant symbolic value as a sector leader. Therefore, he emphasized that Doosan Enerbility cannot be excluded when discussing stocks related to this U.S. investment.

He also projected this year's performance to be quite good and expects its role as a key company in the power sector for Korea's three mega-projects.

A purchase price slightly below the current price is considered appropriate, with a target price of 110,000 won and a stop-loss price of 80,000 won. This strategy aims to participate in the uptrend by buying during short-term stock corrections.

The global Energy Storage System (ESS) market is expected to present significant opportunities for domestic companies. Lee Hyo-geun explained that as the U.S. recently emphasized a supply chain independent of China, the role of domestic companies in this market could expand. Currently, over 90% of the global ESS market adopts lithium iron phosphate (LFP) batteries, and the market share of domestic companies is expected to grow to over 40%. This suggests the possibility for domestic companies to preempt the market through LFP cathode mass production technology.

Sangsin EDP was introduced as a specialized manufacturer of cylindrical and prismatic battery cans, as well as can assemblies. Lee Hyo-geun noted that Sangsin EDP has a very high sales dependency on Samsung SDI, at approximately 90%. This high dependency means that Samsung SDI's growth directly correlates with Sangsin EDP's performance. With the expected full-scale shipment of products for North American ESS, Sangsin EDP is projected to benefit from joint growth with Samsung SDI.

A purchase price slightly below the current price is considered appropriate, with a target price of 24,000 won and a stop-loss price of 17,000 won. This strategy aims to prepare for future stock price increases by purchasing at a lower price during short-term market corrections.