*Today, I paid for ChatGPT Premium and ran a summary of today's reports. It worked perfectly, so I'm sharing it with my stock market teacher colleagues. :)

Today's Big Trends

Today, AI semiconductors and substrates are at the center. Simtek and Daeduck Electronics exceeded expectations in terms of performance, and future profit outlooks also rose accordingly. Strong performers like APR and Lotte Hotel Development stood out, while SK Telecom and LG Uplus saw growth potential in data centers beyond their core telecommunications business.

On the other hand, Netmarble and Kakao Games need to wait a little longer for new game results, and Hyundai Department Store and Lotte Chilsung are burdened by costs. Overall, the outlook for AI and memory remains positive, but short-term volatility could be significant due to the Hormuz Strait, US employment indicators, and oil price movements.

Semiconductors·Electronics·AI Infrastructure

Simtek

Second quarter operating profit was 62.9 billion won, significantly exceeding expectations. SoCAMM module PCBs and MCP substrates are growing together, and with price increases and utilization rate hikes, profits are improving rapidly. It seems to be moving towards a structural change focused on high value-added products rather than simply recovering from the slump.

• Report current price: 103,000 won

• Target price range: 170,000~190,000 won

• Average target price: 179,000 won

• Investment opinion: All BUY

Daeduck Electronics

FC-BGA, FC-CSP, BT substrates, and MLB are all performing well across business divisions. The expansion of approximately 800 billion won is also connected to customer demand, making the growth picture for 2027 relatively clear. The fact that growth momentum is spread across multiple products is reassuring.

• Report current price: 96,800 won

• Confirmed target price: 240,000 won

• Investment opinion: BUY

WonikQnC

With the increase in operating rates of semiconductor customers, quartz and cleaning businesses have entered a recovery phase. Going forward, we need to watch how quickly memory manufacturers' capital expenditures increase.

BH

Smartphone component performance is still sluggish, but the opinion is that the value of new businesses such as defense and robots has not been reflected in the stock price. It's a stock to watch for its low valuation and business diversification potential rather than short-term performance.

Hanwha Vision

AI data centers and HBM-related growth are being added to the existing video security business. The attractiveness lies in the fact that it is creating a new growth axis while generating cash from its core business.

NAVER

The data center asset structure allows partners to bear the burden, and NAVER secures operating revenue. Capital efficiency seems good. The key is how quickly external customers and utilization rates increase.

IonQ·Palantir

IonQ continues to raise its revenue guidance, but the stock price can fluctuate significantly depending on technological advancements and contract announcements. Palantir is meeting high expectations with actual growth rates, but the valuation is not easy, so it's important to remember that a good company and a good buying price may be different.

Telecommunications·Platforms·Finance

SK Telecom

As the telecommunications business normalizes, AI data centers are emerging as a new growth engine. Profitability has improved due to cost efficiency, and expectations for special dividends remain. However, it will take some time until 2028 for data centers to significantly contribute to profits.

• Report current price: 93,000 won

• Confirmed target price: 120,000 won

• Investment opinion: BUY

LG Uplus

It recorded the highest quarterly operating profit by effectively managing costs. The wireless business is stable, and corporate infrastructure and data centers are growing, making it a comfortable stock in terms of performance among telecommunications companies.

Kakao

Now is the time to show actual users and revenue rather than just announcing AI technology. Advertising and commerce are supporting it, but for the stock price to regain momentum, monetization of AI services is necessary.

Kakao Bank

Customer and platform revenue continues to grow, but loan growth has slowed slightly. The key to the next earnings report is how much improvement there is in net interest margin and fee business.

Kiwoom Securities

It's expanding its territory from an online trading-focused securities firm to an asset management platform. Domestic stock exchange trading volume is supporting short-term performance, and the expansion of financial product sales will determine its long-term revaluation.

Bio·Healthcare

SK Biopharmaceuticals

The US prescription for Excopri is steadily increasing, and the gross profit margin is as high as about 94%. The competitive landscape has also become more comfortable, making it likely that performance will improve.

Alteogen

Additional contracts have confirmed demand for the ALT-B4 platform again. If contract and approval schedules proceed smoothly, sales prospects could rise further, but it is important to note that stock prices may fluctuate depending on partner schedules.

Samsung Epis Holdings

Next-generation biosimilars and new drug pipelines are being added to existing biosimilars. For now, the launch of new products, and in the longer term, the performance of new drugs will be key.

Inbody

The brand has high awareness in the body composition analyzer market, representing its product line. Overseas penetration rate and expansion of medical and fitness data platforms are expected to be growth drivers in the future.

Cosmetics·Consumer Goods·Distribution

A'pieu

It is one of the companies that received the most strong opinions today. As sales in regions, channels, and products are growing simultaneously, annual guidance has been raised, and the possibility of exceeding 3 trillion won in sales by 2026 has been presented. There is also a common assessment that the valuation is low compared to the growth rate.

Hyundai Department Store

Department stores and duty-free shops are improving, but Jinus dragged down consolidated performance. While there is an opinion that Jinus' slump has peaked, it seems safer to lower expectations for now.

Lotte Chilsung Beverage

Sales are being maintained well with product competitiveness, but raw materials, marketing, and logistics costs are a burden. The worst period seems to be over, but it will take some time for profits to rise quickly.

CJ

Major subsidiaries are growing, but concerns remain about slowing profitability and holding company discounts. It is necessary to see whether subsidiary performance leads to actual dividends and cash flow.

Innocean Worldwide

Overseas sales are increasing rapidly, especially in the US. As it expands its business scope beyond traditional advertising to include digital, content, and sports, growth potential has increased.

Travel·Casino·Leisure

Lotte Tour Development

Performance of the casino and hotel at Jeju Dream Tower is improving very rapidly. If the number of Chinese tourists and VIP casino demand continues to increase, the performance leverage could be significant.

Kangwon Land

Due to renovations, room and some facility operations were limited, resulting in performance falling short of expectations. For now, it is better to watch how many visitors and tables will increase after the construction is completed rather than focusing on short-term figures.

Paradise Co. Ltd.

With the return of Chinese VIPs and Japanese customers, it has entered a crucial turning point. If casino sales continue to increase, performance outlook may also improve, but last year's high base should be considered.

Hana Tour

Travel demand is recovering, but competition and product margin pressure remain. It is necessary to observe whether the booking rate and package prices stabilize further.

Games·Entertainment

Netmarble Corp.

First-half new game performance was weaker than expected, and the second-half lineup is not yet strong enough. It needs to release a groundbreaking new game that surprises the market while maintaining existing game sales to change the atmosphere.

Kakao Games Corp.

The outlook for operating profit breakeven is inevitable until this year due to declining sales of existing games. Both stock prices and performance are at the bottom, but it seems difficult to sustain a rebound for a long time without confirming the success of new games.

SM Entertainment Co., Ltd.

Second-quarter results met expectations, and existing artists provided solid support. The next momentum will be the debut of SMTR25 and the initial fandom and album performance.

Dear U (디어유)

The growth rate of the subscription platform is slowing down, so it needs to show results from its new US business. How quickly overseas artists and offline and commerce businesses establish themselves will be crucial.

Automotive·Industrial Materials

• KG Mobility Co., Ltd. (케이지모빌리티) is joining forces with Cherry Automobile to strengthen its competitiveness in electric vehicles and platforms.

• Haneon Systems Co., Ltd. (한온시스템) 's EPS outlook has risen 33% over the past three months, but debt and interest expenses need to be continuously monitored.

• Jeju Air Co., Ltd. (제주항공) is defending profitability by flexibly adjusting routes and supply even in a difficult environment.

• SNT Dynamics Co., Ltd. (에스앤티다이내믹스) has added dividend appeal to the growth of defense and powertrain.

• Samik THK Co., Ltd. (삼익THK) is creating actual sales opportunities in semiconductor equipment parts and collaborative robots.

• Lumiere Co., Ltd. (루미르) and Sammi Metal Co., Ltd. (삼미금속) are expanding their business areas with space, defense, and ship engine parts.

Construction·Holding Companies·Materials

• Daewoo Construction's construction profitability has improved and overseas plant and nuclear power plant orders are expected in the second half of the year.

• Doosan is receiving positive reviews for acquiring SK Siltron at a relatively good price, highlighting the value of semiconductor materials.

• HD Hyundai is expected to see a reduction in holding company discounts as its shipbuilding, power equipment, and construction machinery affiliates perform well together.

• Hanwha's restructuring on August 25th and the value of its defense, shipbuilding, and financial subsidiaries will be key variables.

• KCC's silicon market recovery and approximately 6 trillion won in retained equity value are attractive points.

• Pungsan exceeded expectations with good performance due to rising copper prices and the success of its new business ventures.

• Hyundai Steel successfully rebounded in the second quarter thanks to reduced raw material burdens and improved selling prices.

• LS Eco Energy is benefiting from both rising copper prices and expanded power grid investments.

• Even with a conservative reflection of the SMP price cap, SK Gas's profits are expected to increase by about 47% in the second half of the year.

Other Notable Companies

• Shin Sung E&S·Hanjung EN&S: Expected to benefit from the expansion of the US ESS market.

• Ecopro BM: Due to weak electric vehicle demand, a longer-term perspective is needed rather than an immediate rebound.

• GenieUs: Structural earnings improvement is being driven by demand for zero trust and access control.

• J2 Power: Expected to directly benefit from the growing AI data center power distribution panel market.

• Hanwha Aerospace: Its performance is solid, and it's now time to confirm large overseas orders.

• GS P&L: Operating leverage is clearly evident due to increased hotel room rates and a surge in foreign tourists.

Market·Exchange Rates·Investment Strategy

The US stock market showed mixed performance due to weakness in AMD and SpaceX, along with profit-taking. However, the outlook for memory and AI-related profits continues to rise, suggesting that the overall market is experiencing a rapid rotation of stocks and sectors rather than a downturn.

The dollar weakened due to weak US economic indicators, raising the possibility of the dollar-won exchange rate reaching 1,300 won. However, news from the Strait of Hormuz could significantly impact oil prices and market sentiment in the short term, so it's important to monitor the Middle East situation.

In the semiconductor sector, concerns about memory are easing, leading to expectations of a positive cycle: earnings upgrades → capital expenditure → materials, parts, and equipment orders. It appears that selecting mid-sized growth stocks with confirmed earnings would be preferable on the KOSDAQ.

Additional Opinions

In summary, today's reports suggest that choosing companies with confirmed numbers within good industries is key.

• Companies with strong performance and growth potential include APR, Simtek, Daeduk Electronics, SK Biopharm, Lotte Tour Development.

• For those seeking stability in earnings and new growth drivers, consider SK Telecom, LG Uplus, NAVER, KCC.

• Hyundai Department Store, Lotte Chilsung Beverage, Kangwon Land, Hana Tour are worth considering after further confirmation of their recovery.

• For Netmarble, Kakao Games, DearU, Kakao, the success of new releases or ventures needs to be reflected in numbers for a clear shift in sentiment.

Looking ahead 3 to 6 months, stocks with continued earnings growth but adjusted share prices are more attractive than those with high expectations. My initial focus would be on Daeduk Electronics, Simtek, SK Telecom, and KCC. For a more dynamic approach, APR and Lotte Tour Development could be added as candidates.

Even with promising growth stories, it's easy to get emotionally invested all at once. It's better to approach in stages and confirm if the investment logic remains valid in the next quarter's earnings. Our money is precious, so let's not rush into love.