U.S. corporate profits are outstanding
When including big tech such as Tesla
Bangsanju Northrup, pay attention
Pharmaceutical stock Merck expected to improve profits
The charm of Samsung Electronics has reached the bottom
Shipbuilding stocks such as Dongseong Whitetech are also on the list.
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This year, domestic stock investors are in the middle of winter, but ‘Seohak ants’ who invest in American stocks are still enjoying spring. However, this ‘investment season’ is about to change. In Korea, the investment temperature is rising due to the recent abolition of the financial investment income tax, and investors are beginning to look for undervalued stocks whose stock prices have fallen significantly compared to their performance. In the United States, there are many companies that are leading the way in artificial intelligence (AI), and investment is warm due to lower interest rates.
The ‘4 major stock experts’ who will appear on the money show in the second half of the year say, “As the investment difficulty increases, the return on investment varies greatly depending on which stock you choose.” Prior to the Seoul Money Show Plus, which opens at the aT Center in Yangjae-dong, Seoul on the 21st, they took pictures of stocks as diverse as their investment philosophies. However, rather than going all-in on one stock, he urged investors to diversify their investments across industries. It was recommended to reduce the proportion of overvalued stocks and include more undervalued stocks to be emphasized in Money Show Plus.
Speakers from the four major stock sectors pre-interviewed by Maeil Business Newspaper on the 6th were Yeom Seung-hwan, director of LS Securities, Yoo Dong-won, head of the Global Asset Allocation Division at Yuanta Securities, Park So-yeon, a researcher at Shinyoung Securities Research Center, and Baek Chan-gyu, head of the stock strategy team at NH Investment & Securities Research Division. If we compare investment tendencies to soccer positions, Director Yeom and Director Yoo are closer to the strikers, while Commissioner Park and Team Leader Baek are closer to the midfielders. In terms of preferred investment regions, Director Yeom and Commissioner Park are from the domestic group, while Director Yoo and Team Leader Baek are from the overseas group.
Investors need to structure their stock asset portfolio according to these tendencies. All four speakers viewed the recent investment environment as favorable to the stock market. Director Yeom Seung-hwan said, “The awkward meeting of economic prosperity, price stability, and interest rate cuts has recently become the best combination in the stock market.” He added, “The domestic stock market is absolutely undervalued with a price-to-book ratio (PBR) of 0.9 times, so the downside risk is quite limited.” It was diagnosed. His prediction is that the only thing left to do is for the stock prices of domestic companies to rise.
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Commissioner Park So-yeon also analyzed that the domestic stock market is attractive if you invest from now on. He predicted, “The domestic market is firmly in a downward rigidity due to the abolition of the gold investment tax, value increase, and activist momentum,” and added, “As chronic undervaluation and under-dividend issues are resolved, the stock prices of listed companies will trend upward.” This means that the fact that the gold investment market pushed by the political world was blocked due to investor opposition is evidence that the domestic stock market is changing.
Their opinions are close to ‘contrarian investment’. The domestic KOSPI index fell 3.5% through November 5 this year, while the U.S. S&P 500 index rose 20.5%. It is expected that in the future, the stock market will not flow solely in the direction of the United States, and that undervalued stock markets such as domestic ones will rise like the other side of the seesaw. Director Yoo Dong-won still maintained the opinion that the United States would be good. The logic is that there is no room for the United States, which uses AI as a strategic weapon, to be defeated.
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Director Yoo said, “Using the investment data so far, the period in which the U.S. economic growth rate surpasses other global economic growth rates will continue until 2028,” and added, “We look at the U.S. stock market through return on equity (ROE) rather than price return (PER).” “You have to see it,” he emphasized. He continued, “In Korea, there is a possibility of an economic recession and the high household debt ratio is holding back the stock market, and the effect of the gold investment tax will only be short-lived.”
From an investor’s perspective, the IT industry, including AI, was mainly selected as the industry to include in the portfolio. Although crisis theories about Samsung Electronics are widespread, there is also an opinion that Samsung Electronics is the best stock to buy from an undervalued perspective. This is even the story of Team Leader Baek, who mainly recommends overseas stocks. He said, “In terms of stock price relative to performance, the undervalued stock is by far Samsung Electronics.” He added, “The current stock price of around 1x PBR is lower than during the past US-China trade war, and if new products are launched and performance improves in the future, the sluggish stock price will break away. “I will do it,” he predicted.
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Director Yeom also suggested Samsung Electro-Mechanics as a domestic stock worth investing in without burden. Samsung Electro-Mechanics’ main product is multilayer ceramic capacitor (MLCC). General (general purpose) demand has decreased, but demand for high value-added AI is rapidly increasing and performance is on the rise. Operating profit in the third quarter increased 20% in one year to 36.8 billion won. Director Yeom diagnosed, “Although MLCC sales are steady as demand for electronic devices such as electric vehicles and self-driving cars increases, the stock price is linked to Samsung Electronics and is extremely undervalued.” Samsung Electro-Mechanics’ expected PER for the next 12 months is 12.8x (based on F&Guide).
Commissioner Park recommended Samsung BioLogics, another Samsung Group listed company. He said, “Samsung Bio’s orders are accelerating with the completion of its 5th factory along with the U.S. biosecurity law that keeps Chinese bio companies in check,” and “the beginning of the U.S. base interest rate cut is a representative good news for the bio industry.” As Chinese bio companies such as WuXi Bio are virtually on the verge of being driven out of the US, Samsung Bio’s exclusivity is strengthened. Samsung Bio’s stock price has risen about 27% this year.
There was also an opinion that we should invest in domestic companies that are producing results in the United States. ‘Genic’ is listed in Director Yeom’s recent recommendation list and Money Show dictionary material. Genic is an original development manufacturing (ODM) company for mask packs and basic cosmetics. In Yeouido, the company’s stock price has risen significantly, but the target stock price continues to be raised. The number one mask pack on Amazon is ‘Collagen Real Deep Mask’, and the key manufacturer of this product is Genic.
Director Yeom explained, “Xenic succeeded in turning a profit in the second quarter and has been seeing full-fledged sales and profit growth since the third quarter,” adding, “The PER based on 2025 net profit is undervalued at 7 times.” Genic’s stock price has risen more than six times this year, but Director Yeom, as a striker, believes that the stock price is cheap compared to expected performance. He also presented Dongbangseongi, a small-cap stock that is relatively undervalued in the shipbuilding industry.
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In this money show, an exchange-traded fund (ETF) that bundles undervalued blue-chip stocks will be introduced. Team Leader Baek Chan-gyu’s number one recommended ETF after 2022 is America’s ‘MOAT’. It is literally an ETF that selectively invests in companies with sustainable competitive advantages and economic moats. As of the 5th, it contains stocks with exclusivity within the industry, such as Market Access Holdings and Gilead Sciences. Team Leader Baek emphasized, “MOAT can be a comfortable investment if you want to enjoy monopoly and diversification at the same time.”
Director Yoo Dong-won believed that highly related domestic stocks, especially Nvidia and Tesla, could also be investment alternatives. He predicted, “SK Hynix, which is included in Nvidia’s supply chain, and Kia, which is undervalued in the autonomous driving industry, will have low investment risk, unlike other domestic stocks.” A method of investing in risks originating from the Middle East was also presented. Team Leader Baek said, “Among the major companies in the U.S. defense industry, Northrop Grumman (NOC) has positive future performance due to increased global defense spending and aerospace defense, so it is worth including in the portfolio.”
Director Park So-yeon said that as a stock related to nuclear power generation, we should pay attention to KEPCO Technology, which also pays dividends. Recently, KEPCO Technology attracted attention as its profit forecast for the fourth quarter was revised upward by 10%. Director Park said, “The performance outlook is good due to long-term external growth and improved profitability following the resumption of construction of Shin Hanul Units 3 and 4, but the stock price has barely risen this year.”
