Today, we are sharing a summary of today's securities reports compiled and summarized by ChatGPT.

Please understand that the content is written in informal language.

Today's Key Points

• The market rested while waiting for the US CPI and US-Iran negotiations, but domestically, a cyclical buying trend spread from large semiconductors to cosmetics, finance, and small and medium-sized stocks in KOSDAQ.

• While HBM and AI server demand remained strong in semiconductors, the possibility of a 2027 peak out for general memory was also raised. Stock selection has become more important.

• In terms of company performance, BGF Retail, NHN, Cosmecca Korea, and Regional Heating Corporation exceeded expectations, while Hanwha KPS and Nexen Tire saw cost burdens highlighted.

• The argument that SOCAMM2 sales will boost earnings in the second half of the year for Semtech has strengthened, and Daeduck Electronics maintained its outlook for long-term earnings growth due to increased investment in ABF and AI substrates.

1. Market·Industry·Investment Information

Semiconductors·AI Data Centers

The view that investment capacity for AI data centers is still sufficient prevails. Considering the cash flow and depreciation allowance of big tech, it is unlikely that capital expenditure expansion will immediately lead to financial burdens, and the benefits are expected to spread to HBM, multi-layered substrates, MLCCs, power, and networks (Investment capacity for AI data centers is sufficient). SK Hynix is continuing its historical performance centered on HBM, while Samsung Electronics is seen as a buying opportunity during the stock price adjustment period.

However, there are temperature differences within memory. Memory Split 2027 HBM's surge and general memory peak out raises the possibility of both HBM growth and general DRAM cycle peaks. This means that while HBM, SOCAMM, and server substrates are strong, the rate of increase in general memory prices may slow down. The PDF file is damaged, so only the common argument related to the title and normal report was reflected.

AI infrastructure strategies are also diverging. NVIDIA is leading with its integrated platform and network dominance, while AMD is emphasizing open ecosystems and price competitiveness (NVIDIA and AMD, different AI infrastructure solutions). In the short term, NVIDIA's ecosystem superiority will be maintained, but in the long term, customer supply chain diversification is expected to create opportunities for AMD (Eugene Investment & Securities).

Electronic components are structured so that server demand pulls up both prices and quantities. Samsung Electro-Mechanics is converting its production lines to server MLCCs, tightening the supply of general products, while Haesung Dies is expected to lead a recovery with increased AI data center-oriented lead frames and ASP.

Internet·Games·AI Software

Both NAVER and Kakao's AI strategies involve embedding AI agents within their platforms, but their monetization paths differ. NAVER is pursuing a comprehensive approach encompassing search, commerce, cloud, and enterprise AI, while Kakao is focusing on increasing KakaoTalk usage time and Tokbiz conversion rates (Comparison of Naver and Kakao's performance reviews and AI strategies).

NHN's earnings estimates have been raised due to the increase in game, payment, and cloud demand. Hancom is transitioning from document software to an AI company and strengthening shareholder returns through share buybacks and dividends.

Energy·Nuclear Power·Utilities

International oil prices are more influenced by actual production levels and Middle East supply disruptions than OPEC+'s announced increase. Actual supply is more important than OPEC+ increase suggests that nominal increases may not immediately lead to oversupply due to idle production capacity and member compliance rates. The US-Iran negotiations and the surge in oil prices have raised concerns about short-term inflation (Kiwoom Securities, AI Daily Global Market Briefing).

Regional Heating Corporation's second-quarter earnings were exceptionally good, exceeding annual guidance. Individual rate plans and high dividends are investment points. On the other hand, Korea Gas Corporation saw unpaid bills increase again due to rising oil prices and exchange rates. While both are energy companies, Regional Heating Corporation focuses on profit and dividend improvement, while Gas Corporation prioritizes managing unpaid bills.

Hanwha KPS's earnings were sluggish due to labor costs and one-time expenses, but the volume of nuclear power plant maintenance and overseas nuclear power momentum remained. Earnings decline due to increased labor costs lowered short-term estimates, while Looking beyond past performance to future recovery placed more weight on long-term nuclear power orders and dividends.

Cosmetics·Consumer Goods·Distribution

The cosmetics industry is driven by exports and customer diversification. Cosmecca Korea saw balanced growth in Korean and US customers, exceeding consensus operating profit. The company also maintained its market share of K-beauty brands in Amazon's August rankings (Breaking historical highs). While it did not set a target price, it emphasized valuation leeway and raised the target price to 150,000 won (Everything is good).

The distribution sector saw strong performance from both BGF Retail and GS Retail due to store efficiency and foreign demand. BGF Retail recorded record high profits, including one-time logistics costs, while GS Retail continued its structural improvement in convenience stores and supermarkets.

Automotive·Transportation·Aviation·Real Estate

Weekly data for automobiles and secondary batteries focused more on the impact of tariffs, raw materials, and transportation costs than finished vehicle sales. Nexen Tire's target price was lowered due to risks from rising raw material and logistics costs, while Lotte Rental is expected to see earnings improvement through efficient car rental and used car operations.

Summer peak season effects are strong in air transport, but rising oil prices are a burden on airline costs. In terms of cargo volume, CJ Logistics is looking for signs of bottoming out. In the hotel and development sector, West T&D has both room performance and Yongsan development momentum.

Real estate tax revisions could lead to an increase in sales volume and a decrease in rental volume (Impact of real estate tax revision). Jais&ND presented housing sector turnaround and data center business as new growth drivers.

Defense·Space·Satellite Communications

The defense industry is at a turning point, shifting from simple finished product exports to local production, joint development, and equity investment. The possibility of Hanwha Aerospace acquiring a stake in Korea Aerospace Industries (KAI) is being evaluated with the advantage of integrating the aerospace and defense value chain, as well as variables such as financial burden and governance structure (Hanwha Aero, KAI Stake Acquisition Future Path Check).

Satellite communications are a growth axis with the expansion of low Earth orbit satellite networks and government and defense industry demand. Intelliantech is expected to improve its performance in the third quarter following the second quarter, but quantitative figures are not reflected as the original PDF was damaged. The space ETF data emphasizes the long-term growth potential of the industry while pointing out launch failures, policies, and valuation risks.

Precious Metals·Nonferrous Metals·Carbon Market

Gold has been adjusted due to the dollar and real interest rate burden, but there is a view that the adjustment is coming to an end due to central bank purchases and geopolitical risks (Gold, Adjustment Coming to an End). Korea Zinc's strengths are precious metal prices, strategic mineral premiums, and refining profits at its headquarters. Regional differentiation in global carbon emission allowances is increasing depending on policies, economic conditions, and energy prices.

Market·Interest Rates·Exchange Rates·Asset Allocation

The US stock market was weak due to expectations of CPI release, US-Iran negotiation uncertainties, and high index levels. The surge in oil prices supported the dollar and raised inflation concerns (Kiwoom Securities, 08_11 Dollar, Surge in Oil Prices Leads to Rise). Since it is before the official CPI announcement, it is necessary to look at both energy-excluding core consumer prices and service prices rather than determining the direction.

The dollar-yen pair faces downward pressure due to expectations of Japan's policy normalization and the possibility of US-Japan cooperation, but US interest rates and risk aversion are rebound factors. Dollar-Yen Exchange Rate, Rebound Again? suggested the possibility of a short-term rebound (iM Securities), and Several Issues Regarding US-Japan Foreign Exchange Market Intervention pointed out that it is uncertain whether policy cooperation will actually lead to intervention.

In Korea, while KOSPI remained calm, the KOSDAQ buying sidecar was reactivated. KOSDAQ Restarts, Buying Sidecar Sounds Again analyzed that a large semiconductor breather and improved performance of neglected stocks created cyclical buying (Daishin Securities), and Cosmetics, Finance, Semiconductors presented the relative strength of cosmetics and finance along with semiconductor supply and demand stability (Mirae Asset Securities). However, it is better to confirm the upward revision of performance rather than chasing purchases of surging stocks.

Token securities are more important than the passage of the bill itself in terms of issuance and distribution separation, investor protection, and over-the-counter trading system design. Despite the delay of the Clarity Act, financial institutions' business expansion continues in the virtual asset industry. ETF funds are moving towards defensive criteria such as cash flow, diversification, and bond mixing rather than simple themes.

2. Company Analysis

Semiconductors·Electronic Components

Internet·Game·Software·Financial IT

Distribution·Content·Entertainment·Leisure

Past Report Analysis Opinion: BGF Retail was previously viewed as having high quality existing store and foreign sales, while CJ ENM and Studio Dragon were evaluated based on Tving's profitability and cost efficiency. SM and YG Entertainment continued to be seen as having a structure where high-year and low-year IPs alternate for growth.

Food & Cosmetics

Bio·Healthcare

Past Report Analysis Opinion: Previously, high Xcopri prescriptions and high gross profit margin were considered strengths, with the second product being a relaying condition. Today, concerns about competitor drugs have eased, further confirming the defensive power of existing products.

Energy·Utilities·Power Plants

Past Report Analysis Opinion: Korea Gas Corporation saw positive resource development results yesterday, but today accounts receivable increased again as a new burden. Cash recovery is becoming as important as profit improvement.

Nonferrous Metals

Automotive·Transportation·Industrial Goods·Construction

Finance

Past Report Analysis Opinion: Previous reports also pointed out that not only trading volume but also asset management, operations, and affiliate profits contributed to Korea Financial Group's high profitability. Today's report confirms the same conclusion.

Overall Opinion

The most notable stock today is Semtech. Both reports raised their earnings estimates for the second half based on SOCAMM2 and high value-added boards, with an average target price of 177,500 won. However, given the recent rapid share price increase, it may be better to approach gradually rather than making a large investment at once.

For stable earnings stocks, BGF Retail, Orion, and Korea Financial Group look good. For growth confirmation stocks, Samsung Electronics, Haesung Dies, and Cosmecca Korea are also promising. On the other hand, Hanwha KPS and Nexen Tire seem to be showing short-term cost burdens before long-term logic, so there is no need to rush.

The overall market is in a phase where cyclical stocks are rapidly traded before the CPI announcement. While semiconductors may have taken a breather, it's more comfortable to choose stocks whose earnings estimates are rising and target prices are also increasing rather than following latecomers in the KOSDAQ surge.

Reference and Limitations

• Original: 20260811 folder, 106 PDF files from securities firms and research institutions

• 9 files with unconfirmed content: SFA Semiconductor, Memory Split 2027, part of VH, part of Samsung Electronics, part of Semtech, defense industry procurement data, Intelliantech, Siemens, part of Cosmecca Korea. If there are valid reports for the same stock, they were used as supplements.

• The average target price was calculated using only valid reports with confirmed figures. Duplicate copies and reports without target prices were excluded.

• Target prices and investment opinions are judgments of each publishing institution and do not guarantee actual returns.