Kim Heung-tae, Manager: “Focus on Semiconductor Materials, Parts, and Equipment, and Robot-related Stocks; Samsung Electronics and SK Hynix Overly Depressed”

It was pointed out that stocks recently grouped as inter-Korean economic cooperation stocks lack substantial business relevance. Manager Kim Heung-tae warned that these stocks might move independently of actual economic cooperation, potentially distorting the market. With considerable time having passed since the closure of the Kaesong Industrial Complex and a lack of momentum, a rise simply riding on a theme is analyzed as risky.

The semiconductor SOBUJANG sector continues to show strength based on earnings. Performance-leading stocks such as HPSP, Simmtech, and Ducksan Tekopia are driving the upward trend, with consistent buying by foreign and institutional investors. These stocks are expected to have ample room for further growth if they break through the top of their box range.

The possibility of a rotational rally is being raised in the semiconductor equipment stock market. Following the initial advancers, late-mover stocks like YESTI, which have successfully reversed their trend, are drawing attention. PSK Holdings and Innotech, which had been stagnant, are also expected to gain momentum if accompanied by increased trading volume, which is seen as a natural phenomenon within the overall market uptrend.

An analysis suggests that now is the time to firmly hold semiconductor SOBUJANG stocks. Manager Kim Heung-tae emphasized that there is no reason to sell these stocks as their fundamentals remain completely intact. He believes there is significant long-term growth potential due to ongoing core projects related to mega-projects.

The recent sharp declines in Samsung Electronics and SK Hynix are interpreted as mere market noise and could, in fact, be buying opportunities. There's a high possibility of rebound buying in the market's oversold territory, and expectations are growing that both stocks will successfully reverse their trend. The opinion is that temporary declines can be disregarded as there are no issues with their fundamentals.

Price adjustments and pullbacks after short-term sharp rises are interpreted as natural profit-taking processes during a market uptrend. Manager Kim Heung-tae explained that Samsung Electronics and SK Hynix, which had fallen from high-flying positions, also necessarily require some degree of profit-taking. This correction is diagnosed as a process of raising the low points and setting the stage for another rise.

The opinion is that a strategy of holding semiconductor SOBUJANG stocks without wavering is valid, as there is no fundamental damage to them at this time. Simmtech, Jusung Engineering, and others have seen significant gains since early August, and the current price adjustment due to short-term sharp rises is not a sign of the trend breaking. It was also advised that it is better to accumulate these stocks gradually during such times.

As Hyundai Motor Group pushes to equip Boston Dynamics' humanoid robot 'Atlas' with domestic components, the possibility of automotive parts stocks benefiting from the robot sector has been raised. Hyundai Motor is requesting robot component business plans from its affiliates and parts suppliers, with supplier selection expected in the fourth quarter of this year. This is seen as an opportunity for automotive parts companies to expand into the robot value chain.

In connection with Hyundai Motor's robot business plan, automotive parts stocks such as Hyundai Mobis, Hwashin, Hwashin Precision, and SL are emerging as expected beneficiaries of the robot value chain. Hwashin Precision, in particular, hit the upper limit on the day, demonstrating strong market interest. It was also analyzed that robot component-related companies like Halla Cast warrant attention. These companies have a high probability of being incorporated into Hyundai Motor Group's robot component supply chain.

For robot-related parts stocks like Halla Cast, a strategy of realizing short-term profits and then re-entering is effective. Manager Kim Heung-tae mentioned his experience of realizing short-term profits with Halla Cast and anticipated a breakthrough from 15,000 to 17,000 won. He emphasized that other automotive parts stocks such as Hwashin, SL, and Hwashin Precision also have high potential to expand into the robot value chain, requiring continuous attention.

Automotive parts stocks are drawing market attention as their potential for linkage with robot component production increases. It is advised to carefully check companies like Hwashin and Seoyon E-Hwa, as they possess the capabilities to produce not only automotive but also robot components. These companies are expected to see a surge soon.

With Seoyon E-Hwa's investment warning lifted, transitioning to an investment caution status, an opportunity for profit realization is expected. Manager Kim Heung-tae mentioned that the warning is likely to be lifted by tomorrow. Seoyon E-Hwa is categorized as a key company in Hyundai Motor's robot value chain, so investor attention is expected to focus on it.

It was argued that a biased perspective relying solely on Samsung Electronics and SK Hynix amidst market fluctuations should be avoided. Manager Kim Heung-tae emphasized that selective investment is crucial as there are many stocks within the SOBUJANG sector that can move. Although the market currently has high capital volatility, abundant liquidity means that if one holds good stocks without wavering, it can be a market full of opportunities. The possibility of foreign buying inflow was also mentioned as a positive factor.

The ESS (Energy Storage System) market is emerging as a core new business for expanding power infrastructure due to increased solar power generation and data centers. SK E&T, Hanjung NCS, and Seojin System are gaining attention as related stocks. It's also analyzed that the three major battery companies (SK On, Samsung SDI, LG Energy Solution) are adopting ESS as a new growth engine because relying solely on the battery market offers limited room for performance improvement. ESS is recognized as an essential technology to compensate for the drawbacks of renewable energy and enhance power efficiency.

An analysis suggests that ESS market growth is inevitable due to data center expansion and the proliferation of renewable energy. Renewable energy has the drawback of being difficult to use during natural disasters, making energy storage systems essential to compensate for this. Additionally, ESS demand is increasing for stable power supply to data centers. SK E&T was mentioned as a representative related stock, with Hanjung NCS and Seojin System also presented as stocks that could gain attention with ESS market growth.

SK E&T is currently fluctuating around 60,000 won, hampered by resistance at the early 60,000 won level. Manager Kim Heung-tae projected that a surge will occur once this resistance is successfully breached. A breakthrough of the 60,000 won level is expected to attract rebound buying, potentially accelerating its upward momentum.

GNC Energy, an emergency generator manufacturer, has seen its order backlog more than triple in three and a half years, demonstrating the co-growth of the ESS market. GNC Energy's growth is aligned with increasing demand for emergency generators, and this is analyzed as sharing market trends with ESS-related companies like SK E&T. It suggests that increased demand for emergency power due to expanded power infrastructure is a pillar of ESS market growth.

A warning was issued to exercise caution when investing in Front Robotics, as it rose due to its past history as an inter-Korean economic cooperation stock (P.S.K Technology) rather than its connection to the robot sector. Manager Kim Heung-tae emphasized that this company does not hold significant weight within the robot sector and should not be mistaken as a leading robot theme stock for purchase. This serves as another reminder of the risks associated with stocks riding on unsubstantiated themes.