July Shows Sectoral Differentiation: "Focus on High-Growth Small and Mid-Cap Stocks"

[Asia Economy Reporter Lee Seon-ae] In July, rather than a specific industry standing out, there is a clear trend of differentiated movements by individual stocks. Accordingly, investment advice has been raised emphasizing the importance of selecting promising categories first and then identifying the companies with the highest growth potential within those categories, rather than simply increasing the weighting of a particular industry.

According to Kiwoom Securities on the 11th, the promising categories suggested by the Growth Company Analysis Team of the securities firm for July are the health functional food industry, the mobile components industry centered on foldable devices, and the medical device industry.

Kiwoom Securities stated, "High interest and industrial growth in health functional foods are expected to continue. The mobile industry, which experienced the toughest period in the tech sector during the first half of the year due to component supply issues, is expected to improve performance and reverse sentiment in the second half centered on new foldable models. Additionally, in the medical device industry, which is emerging as a key export sector focused on rapid diagnostic kits and dental implants, it is necessary to pay attention to promising companies experiencing rapid growth in the fields of aesthetic medical devices and therapeutic medical devices."

Reflecting this, the top picks for July are Cosmax NBT, BH, and Osstem Implant, with Ace Tech and Shinseong Trading suggested as stocks of interest.

Previously, in June, the Growth Company Analysis Team at Kiwoom Securities identified attractive categories as edutech companies that have secured content and know-how to enhance the effectiveness of online education, dental-related stocks with high sales proportions in China and emerging markets, and companies proactively entering markets related to environmental friendliness and industrial safety amid the global ESG trend.

The top small- and mid-cap picks for June were Cheongdam Learning, Osstem Implant, and EcoPro HN, with Ace Technology and KH Vatec suggested as stocks of interest. The average return of the recommended small- and mid-cap portfolio since the publication date of the June monthly report was +9.6%, significantly outperforming the KOSDAQ market return of +4.6% during the same period.