[Special Stock] KMW Rises on 'Inflow of Bargain Buying' After Fully Reflecting Negative Factors

[Asia Economy Reporter Lee Seon-ae] KMV is showing an upward trend of around 3% in the early trading session on the 5th. This is interpreted as an influx of buying demand aiming to take advantage of low-price purchases, as the stock price had fallen due to previously reflected negative factors.

As of 9:39 AM, KMV is trading at 58,400 won, up 3.36% compared to the previous trading day. At the start of the session, it surged to 59,600 won.

On this day, Hana Financial Investment stated that it is necessary to actively consider buying KMV from now on, maintaining a buy rating and a target price of 120,000 won.

Although exports to the U.S. through Samsung Electronics this year are expected to fall significantly short of estimates, the order progress through other vendors is relatively good, so it is expected that after passing the current worst point in the long term, the company will enter a performance recovery trend. In particular, due to concerns over Samsung's order slump, KMV's stock price has recently fallen excessively, so it seems necessary to actively engage in phased buying from now on.

The possibility of Samsung's order slump this year has already been sufficiently reflected in the stock price, according to Kim Hong-sik, a researcher at Hana Financial Investment. KMV's stock price has returned to the level of April last year, before the U.S. order expectations took effect, indicating that the negative factors have been priced in.

The current stock price does not reflect the potential for advancement in the Japanese market, especially the fact that Fujitsu and NEC are expected to secure significant positions not only in Japan but also in the U.S. and the U.K. With the second quarter order events in Korea, India, and Europe coming to the fore, the stock price is expected to rebound. Although the worst performance and stock price situation are unfolding in the short term, KMV's stock price is highly likely to attempt a rebound soon.

Researcher Kim said, "Although investors' concerns are significant, in the long term, KMV's stock price will inevitably continue an upward trend by raising its peak until 2022," emphasizing, "I recommend avoiding unnecessary multiple controversies, and since the true 5G era has not yet opened worldwide, an unexpectedly high multiple formation is expected."