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Photo = Getty Image Bank This week (October 21st to 25th), hundreds of billions of won worth of loans are about to expire at Market PRO. Lotte Tourism DevelopmentWe looked at Oklo, a next-generation small modular nuclear power plant (SMR) developer. We delivered a variety of information to Hankyung.com readers, including transportation stocks that quietly laugh at the decline in oil prices, gold ETF investment methods, and nuclear power stocks that have emerged as the next theme of artificial intelligence (AI).
Should I buy this stock or not?
✔Lotte Tourism Development, loan maturity returns… Is there any burden of refinancing?
Lotte Tourism Development, which has been enjoying an upward trend in performance due to the smooth sailing of its casino business, will soon reach maturity on its 780 billion won loan. As we lack cash assets that can be immediately mobilized, we are pursuing refinancing (refinancing borrowings). There are predictions in the market that some of the financial burden will be relieved through refinancing. According to the financial investment industry, Lotte Tourism Development’s loan (KRW 785.6 billion) for the construction of the Jeju Grand Hyatt Hotel (Dream Tower) will mature on November 29. The maturity of the loan was until November 2022, but it was extended by another year last year. At that time, operating profit reached its first surplus since the resort opened, and loan negotiations with the financial sector accelerated. Additionally, the lifting of restrictions on Chinese tourists to Korea also facilitated loan negotiations. Currently, Lotte Tourism Development is pursuing long-term refinancing through discussions with creditors. There are also plans to repay part of the loan through the issuance of convertible bonds (CB). The market predicts that refinancing will take place without difficulty. The collateral value of the Jeju Dream Tower complex resort building located in a tourist attraction is clear, and the casino business is going smoothly.
✔The future of AI power chosen by Altman… Will this be the SpaceX of nuclear power?
“We have not found a way to meet energy demand while achieving carbon neutrality without nuclear power.” After Oklo, a small modular nuclear power plant (SMR) developer, announced its listing in July last year, Oklo Board of Directors and OpenAI CEO This is what Sam Altman said. Now, about a year later, big tech companies such as Microsoft (MS), Google, and Amazon are proving his prediction by signing power transaction contracts with nuclear power plant development companies. Is it because of Altman’s guarantee? Is it because of the nuclear power renaissance? Over the past two weeks, Oklo’s stock price has more than doubled, receiving intense attention from investors. The market capitalization exceeded 3 trillion won. Some point out that investors are betting too much on the ‘pure potential’ of companies that have not made any sales.
What investment strategy will work?
✔Passenger numbers increase due to falling oil prices… Transportation stocks quietly ‘smile’ in the third quarter
Transportation stocks, which had stagnated, are rebounding. Expectations for improved performance are growing due to falling international oil prices and recovery in passenger demand. According to the Korea Exchange on the 22nd, the KRX Transportation Index ranked first in growth rate (5.69%) among major indices over the past 10 days (October 11 to 21). As we enter the third quarter earnings season, Hanjin KAL(12.71%), Korean Air(8.26%), Hyundai Glovis(6.78%), HMMMajor constituent stocks such as (3.44%) are also showing strength. This is interpreted to be due to improved investment sentiment in the transportation industry as the interest rate cut coincided with a decline in international oil prices. International oil prices, which were in the mid-$80s per barrel in early July, have recently been moving around $70. Oil prices are falling as the possibility of Israel attacking Iran’s crude oil facilities has decreased and the Organization of the Petroleum Exporting Countries (OPEC) has again lowered its global demand forecast for this year. The fact that corporate consumption and demand are expected to increase due to interest rate cuts is also positive for transportation stocks.
✔Gold price reaches record high ahead of US presidential election… Shiny ETF
As gold prices soar, related exchange-traded fund (ETF) stock prices are also strong. As military tensions continue in the Middle East, the preference for safe assets has deepened ahead of the US presidential election next month. According to the Korea Exchange on the 22nd, ‘ACE Gold Futures Leverage (Synthetic H)’, which tracks twice the international gold futures price, rose 31.42% in the second half of the year (July 1 to October 22). Korea’s first product to invest in gold mining companies,HANARO Global gold mining company‘ also jumped 27.61%, and ‘ACE KRX Gold Spot’, which uses the ‘KRX Gold Spot Index’ as its base index, also rose 22.2% during this period. These gold-related ETFs, including ‘TIGER Gold Futures (H)’, ‘KODEX Gold Futures (H)’, and ‘TIGER Gold and Silver Futures’, rose more than 15%, showing the second highest increase after China and bio ETFs.
✔When performance is down, ‘high dividend stocks’… What are the high-dividend stocks that institutions should target?
As performance estimates for domestic listed companies are being lowered, interest in high-dividend stocks is increasing. Kia and S-Oil, HDHyundai are considered high-dividend stocks that are likely to attract institutional investment at the end of the year. According to financial information company FnGuide on the 24th, the combined operating profit consensus (average of securities company estimates) for this year and next year for listed companies in the stock market has been lowered by 3% and 3.47%, respectively, over the past month. Looking at the performance growth rate, the combined operating profit is expected to increase by 66.47% this year compared to last year, but next year’s growth rate will shrink to 24.01%. Lee Gyeong-soo, a researcher at Hana Securities, said, “In 2018 and 2022, the first years in which the profit growth rate slowed, semiconductors and large-cap stocks underperformed the market. The investment concept that performed well at the time was ‘high dividends.'”
✔Nuclear power plant emerged as the next AI theme… Shall we warm up the end of the year?
The nuclear power plant theme is attracting attention as one of the next leading stocks to succeed semiconductors in the artificial intelligence (AI) sector. Global big techs are rushing to invest in nuclear energy to secure power for AI data centers. As the restart of nuclear power plants and the extension of the lifespan of existing nuclear power plants are discussed, the role of related parts and equipment owners is also becoming more important. According to the Korea Exchange on the 24th, Korea’s leading nuclear power equipment company Doosan Energy The stock price rose 12.2% this month. this period BHWith children (37.1%) Seojeongijeon(18.8%), Woojin Entech(35.2%) also increased. As big tech companies continue to invest in nuclear power generation to operate data centers, domestic nuclear power-related stock prices are soaring. The market predicts that the existing supply chain will find it difficult to meet the increasing demand for AI power, and that the construction of new nuclear power plants or SMRs will increase. Among domestic nuclear power stocks, Doosan Energy is active in the SMR field. The company also invested a total of $104 million (approximately KRW 140 billion) in NuScale Power, the largest SMR design company in the United States, in 2019 and 2021.
✔New low again… There is no wind Samsung Electronicsshould I go for a ride?
On the 25th, Hankyung Market PRO asked five securities analysts whether it was a buying opportunity for Samsung Electronics, which broke a new 52-week low for four consecutive days. Accordingly, four experts advised that the current stock price is at a historical low and that it should be used as an opportunity to buy at a low price. The remaining person expressed the opinion that it is time to take a wait-and-see approach, saying that there are no ingredients for an immediate rebound in stock prices, such as foreign sales. Most stock experts advise to use this Samsung Electronics stock price correction as a buying opportunity. An analyst at a securities firm said, “The opportunity for the stock price to trend upward has not completely disappeared,” and added, “The foreign sales report has only created noise, but Samsung Electronics’ corporate value has not changed.”
Reporter Ryu Eun-hyuk [email protected]
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