Samsung Electronics and SK Hynix have emerged as hot topics in the securities market, following a succession of remarkable quarterly results. As the KOSPI index fluctuates around the 6,500 level, the amount of deposited funds is also showing a trend of rapid increase. Experts analyze that the boom in the semiconductor sector is enriching market liquidity and shifting the main focus of the market to earnings reports. Meanwhile, expectations for the energy and construction sectors are rising due to hopes for the end of the Middle East conflict and surging power demand, while transportation and aviation-related companies are expected to face earnings slumps due to high input costs, suggesting that investors will choose carefully.
According to an AI-based investment analysis platform, the average target prices for energy, construction, and data center-related stocks have shown a sharp upward trend in the past month. Among continuously listed companies on the Korean stock market, SGC Energy saw the largest increase in target price. After announcing its plan to operate AI data centers in 2028, its target price jumped from 48,000 won to 816,667 won. This represents a rise of about 70% in one month, with the securities industry estimating the value of the data center business at 14 trillion won. LS Electric and LS Eco Energy are also expected to achieve favorable results due to strong exports driven by increased demand for overseas data centers and communication cables. Samsung Electro-Mechanics is expected to supply substrates for Broadcom's AI accelerators from the second half of this year, and Viech is expected to supply substrates for Apple products, leading to growing expectations for improved earnings.
Amidst lingering geopolitical risks, the possibility of an end to the Iran war has brought attention to the construction sector. The significant rise in target prices for major construction companies such as DL E&C, Daewoo Engineering & Construction, GS Construction, and Hyundai Engineering & Construction is due to the optimistic outlook that post-war energy facility reconstruction demand will lead to a succession of overseas orders. Lee Eun-sang, a researcher at NH Investment & Securities, expects order volumes in the Middle East region to reach 140 billion dollars over the next three years and advises paying attention to Hyundai Engineering, where plant and nuclear power orders are expected, and GS Construction, which has strong expectations for its Vietnam business. While preparing for geopolitical uncertainty alongside expectations for the end of the war, companies such as Mirae Asset Securities and OCI Holdings are also emerging as earnings stocks due to expectations of investment performance in LIG Defense Aerospace and SpaceX.
On the other hand, the aviation and transportation sectors are showing a gloomy trend due to the adverse effects of high input costs and a strong won. Airlines are facing a heavy burden as they must pay most of their fuel and maintenance costs in dollars, raising concerns about deteriorating profitability. Jin Air has switched to an emergency management system, and CJ Daehan Logistics is expected to have its earnings downgraded due to the deterioration of logistics services. Naver and Kakao also saw their target prices adjusted downward due to concerns over delayed monetization amidst increased AI investment costs, and they are struggling due to delays in blockchain business progress and lack of growth drivers such as the sale of subsidiaries. Hybe and clothing companies are also continuing to see declines in target prices due to rising input costs and poor industry conditions, suggesting that investors should approach these stocks cautiously while checking for home appliance replacement demand during the World Cup season from June to July.