SK Hynix Share Buyback Effect May Be Limited… Focus on Pension Fund Selling and Biotech Strength

Manager Jo Ki-jun emphasized that SK Securities is not an affiliate of the SK Group and separated a long time ago. He clarified that SK Securities is currently a separate company with a private equity fund as its major shareholder.

This suggests that investors can anticipate further upside potential for Samsung Electronics. In contrast, he maintained a sell timing target of 2,200,000 won for SK Hynix, recommending appropriate profit-taking rather than further short-term gains.

He explained that pension funds must sell to alleviate rebalancing pressure and secure momentum for stock price increases. He strongly criticized increasing only their holdings without selling as an inefficient response and a decision they would regret in the long term, urging pension funds to make wise judgments.

Manager Jo Ki-jun argued that pension funds should act as a market stabilizer by selling rather than buying in the current market. He urged pension funds to utilize SK Hynix's large-scale share buyback period to absorb their holdings. This is interpreted to mean that pension funds should positively leverage the impact of share buybacks by large companies like Samsung Electronics and SK Hynix on the market.

He argued that they should secure cash through rebalancing and, based on that, respond appropriately during crucial times such as Samsung Electronics and SK Hynix's share buybacks. He warned that if pension funds fail to perform this role properly, the Korean market will suffer severe damage.

He explained that in actual cases, stock prices often fell or fluctuated during the buyback period. He advised investors not to have excessive fantasies about share buybacks and to approach them cautiously. He even pointed out that the executed volume often fell short of the planned amount.

This implies an upside potential of approximately 20% compared to the current stock price, positively evaluating Samsung Electronics' growth potential even in an adjustment market.

Along with this, stocks like Samyang Biopharm and Ingenia Therapeutics recorded daily limits, driving the overall strength of the biotech sector. Manager Jo diagnosed that the biotech sector is now starting to establish itself as a major trend leading the market's upturn.

However, he cautioned against some media outlets' excessive reporting, mentioning overly large figures like 100 trillion won or 200 trillion won.

As the Ministry of Land, Infrastructure and Transport plans to expand modular housing by 20,000 units through the Korea Land and Housing Corporation, NRB is emerging as a major beneficiary. Manager Jo Ki-jun analyzed that NRB has found its bottom and is on an upward trend, with its performance also improving. He evaluated NRB as a promising stock for the mid-to-long term, expecting significant positive news next year and forecasting a positive impact from the government's housing supply expansion policy.

Manager Jo Ki-jun diagnosed that the theme-driven rally in the robot sector has ended and advised against buying robot-related stocks. Instead, he predicted that the secondary battery and biotech sectors are showing their own upward momentum and are poised to enter a boom period. He specifically expected performance-based secondary battery stocks like Samsung SDI to lead the gains.

He explained that each sector is dividing influence among groups, leading to a battle for market leadership. He recommended approaching sub-materials, components, and equipment (SooBujang) and the Samjeon-Hynix (Samsung Electronics-SK Hynix) group's influence, along with theme stocks like optical communication and robots, from a short-term trading perspective.