Svmuu News: Kim Byung-yeon, Director of the Research Division at NH Investment & Securities’ Investment Strategy Department, stated on July 20 at a roundtable discussion with the press and securities analysts held at the Korea Exchange’s Seoul office that the South Korean stock market has already priced in concerns about a semiconductor market peak, geopolitical instability, and supply-demand disruptions, and has thus fallen excessively.
NH Investment & Securities has set the lower range of the Korea Composite Stock Price Index (KOSPI) at 5,800 to 6,250 points and believes the index is likely to rebound to the low to mid-7,000s following a sharp price correction, followed by stabilization in the growth rates of cloud revenue and capital expenditure plans among major U.S. tech companies.
Kim Byung-yeon noted that attention should be focused on the absolute level of semiconductor export value rather than export growth rates. The firm estimates that the semiconductor industry’s net profit will rise from 217 trillion won last year to 759 trillion won this year and 1,019 trillion won next year, with a 34% growth rate in net profit next year.