Business · Markets · 18 hrs ago

Analyst says Samsung and SK Hynix shares look undervalued

Analyst says Samsung and SK Hynix shares look undervalued

An investment researcher says Samsung Electronics and SK Hynix shares are undervalued compared with their earnings and shareholder returns.

The two companies are South Korea’s leading semiconductor firms, and their shares have recently been falling.

The researcher says their business cycles have become more resilient and that dividends and other returns to shareholders support their value.

He does not expect an immediate rebound and says investors will need to assess earnings through the first half of next year.

He forecasts a possible market recovery and higher valuations in the second half, but this is his view, not a certainty.

Investors who can leave their money invested may consider holding, while those who need the money soon or borrowed to invest may consider selling some shares at a loss.

Those with spare funds could spread purchases over eight to nine months, rather than buying all at once.

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What people are saying

Kim Dong-yeopHead of S1 Investment Research Institute
The shares of the two semiconductor leaders, including Samsung Electronics and SK Hynix, are far too cheap when their current level of shareholder returns is taken into account
via Hankyung
Investors who can leave their money invested until the second half of next year or year-end should hold
via Hankyung
If you are stuck at a high price with money you need to use right away or cannot afford to keep invested, it may be better to sell some now and lock in the loss
via Hankyung
A strategy of splitting up your assets and mechanically buying in installments, keeping the next eight to nine months in mind, is effective
via Hankyung