◆Aju Economy Major News
▷In July's Market Decline, 7 Out of 10 Domestic Stocks Fell... What Are the August Prospects?
- Last month, among 2,645 listed companies on the KOSPI and KOSDAQ, 1,859 (70.3%) saw declines, with 74.8% of KOSDAQ-listed stocks also falling.
- The KOSPI (-22.2%) and KOSDAQ (-21.4%) recorded their largest monthly drops since the global financial crisis in October 2008.
- While stocks like Kolon TissueGene (-86%) and The Technology (-76%) plummeted, others like G&E Healthcare (+222%) surged, highlighting a divergence among stocks.
- Analysts suggest that the recent correction was more influenced by weakened investor sentiment than by deteriorating corporate earnings, indicating that the KOSPI has entered an excessively undervalued phase.
- In August, foreign investment is expected to be a key variable, with strategies focusing on the semiconductor, finance, defense, and food sectors.
◆Major Reports
▷Hanwha Investment & Securities: "Samsung Electronics, Focus on Long-Term Corporate Value Over Short-Term Market Sentiment... Target Price Set at 650,000 Won"
- Hanwha Investment & Securities maintained a 'Buy' rating on Samsung Electronics, raising the target price from 590,000 won to 650,000 won, a 10.2% increase.
- The firm raised its operating profit forecasts for 2026 and 2027 by 3% and 7%, respectively, reflecting the expansion of long-term supply contracts in memory and the potential rise in HBM prices in 2027.
- In the second quarter, sales reached 171.5 trillion won, and operating profit was 89.5 trillion won, marking increases of 130% and 1,814% year-on-year, respectively, with operating profit exceeding consensus estimates by 5.5%.
- The company expects to enhance the stability and visibility of its memory business by securing long-term contracts with five major global hyperscalers for over five years.
- Analysts argue that the current valuation does not adequately reflect performance and shareholder return value, emphasizing the need to focus on long-term corporate value over short-term market sentiment.
◆Major Announcements After Market Close (31st)
▷ Bonne, 2.2 billion won capital increase
▷ No Tae-moon, President of Samsung Electronics, purchased 700 million won worth of company shares as part of responsible management
▷ SK signed a contract to sell a 2.3 trillion won stake with Doosan and SK Siltron
◆Fund Trends (as of 30th, excluding ETFs)
Domestic Equity - 94.2 billion won
Overseas Equity 5.5 billion won
◆Today's Key Schedule
U.S. - ISM Manufacturing Index (July), Construction Spending (June)
Korea - S-Oil, Hyundai Steel Earnings
* This article has been translated by AI.
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