Samsung Electronics, SK Hynix Drop 30–40% on Margin Concerns, Not Peak Earnings: LS Securities

According to LS Securities analyst Jung Da-woon on July 9, recent declines in South Korean semiconductor stocks are driven by margin rate concerns rather than peak earnings fears. Samsung Electronics fell 30.6% from its June 18 high of 362,500 won to 277,500 won, while SK Hynix dropped 40.6% from 2.919 million won to 2.076 million won. Jung suggested current valuations offer buying opportunities, noting that SK Hynix's current price-to-book ratio (PBR) of 2.05 times has fallen 1.12 standard deviations below the fair level of 2.30 times. "The key to confirming this AI cycle will be volume growth in semiconductor production," the analyst said.
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