[October (month 10) 8 Market-Close Review] What matters more than earnings is next year and beyond… Why Samsung Electronics and SK Hynix remain undervalued | Hong Seon-ae, Lee Kwon-hee, Kim Jang-yeol [Closing Bell Live]
- What to look for
- The live market-close broadcast covers the trading-flow and valuation debate, along with sector-specific responses, in the October (month 10) 8 session, when the market plunged despite Samsung Electronics’ earnings of 107 trillion won.
- Why it matters
- Understanding the disconnect between earnings surprises and share prices, along with the reasoning behind price targets, helps interpret brokerage reports and market reactions during earnings season.
AI summary
The October (month 10) 8 Closing Bell Live broadcast reports that the KOSPI closed at 6625, plunging 2.62% amid simultaneous selling by foreign investors and institutions, while the KOSDAQ finished at 892, down 0.69%. It attributes Samsung Electronics’ share-price decline of around 1%, despite a surprise quarterly operating profit of 107 trillion won plus 4 hundred-billion won, not to earnings but to preliminary earnings announcement patterns, trading flows, and the market’s distrust of the semiconductor cycle. D.A. Davidson raised its Micron price target from 2100 dollars to 3000 dollars, arguing for 3~5 years of structural growth. However, the broadcast analyzes this as assigning a PER of 19 times without changing earnings estimates, meaning that persuading the market will take time. It reports that secondary (2) battery stocks rose on LG Energy Solution’s surprise operating profit of 7560 hundred-million won, and materials, components, and equipment stocks rebounded, while biotech suffered a triple blow: Peptron hit its lower daily price limit, Alteogen plunged, and Hanmi Pharmaceutical declined. It identifies ADR weakness, a discount of around 35% on the ordinary shares, and the issue of a separate Solidigm listing as factors behind Hynix’s decline for two consecutive days, saying that 90% of the problem concerns trading flows. It explains that a valuation of 1500 hundred-million dollars for Solidigm could be justified by unlocking its hidden SSD value, but that the structure of existing-share sales and new-share issuance, along with the process of persuading the market, will be crucial. It reports that the broadcast concludes by calling for confirmation of demand at U.S. auctions amid concerns about French government bonds, absorption of options-expiration effects, and, ahead of the holiday break, buying materials, components, and equipment stocks on pullbacks and holding stocks with updated earnings information. All directional outlooks are the speaker’s conditional assessments, not definitive predictions of short-term prices.