Despite High Exchange Rates and Martial Law... Stocks Bought by Billionaires with 1 Billion Won Left in the Bureau Chief Position

HBM Leader SK Hynix Bought the Most
Alteogen and Peptron See Inflow of Low-Price Buying
Rainbow Robotics, Acquired by Samsung Electronics, Also Ranks 3rd in Net Purchases

High-net-worth individuals with an average balance of over 1 billion KRW focused their year-end and New Year purchases on SK Hynix, the leading stock in high-bandwidth memory (HBM). Individual investors, who had turned away from the domestic stock market due to high exchange rates and martial law situations, recently bought Alteogen at its low point and bet on Rainbow Robotics, which was acquired by Samsung Electronics.

According to Korea Investment & Securities on the 7th, the stock most purchased by high-net-worth individuals with an average balance of over 1 billion KRW during the week of December 27, 2024, to January 2, 2025, was SK Hynix. They net bought SK Hynix for a total of 33.1 billion KRW. SK Hynix closed at 199,800 KRW on the 6th, up 9.84% following a 6.25% rise on the 3rd, approaching the 200,000 KRW mark. SK Hynix was also the most purchased stock by foreigners. According to the Korea Exchange, foreigners net bought SK Hynix for 106.5 billion KRW from December 20 last year to January 3 this year. This is attributed to expectations for 'CES 2025,' the world's largest electronics and IT exhibition held from the 7th to 10th (local time), and the positive momentum from U.S. semiconductor stocks like Nvidia over the past weekend.

Moreover, SK Hynix's Q4 performance outlook for last year is positive. According to FnGuide, SK Hynix is estimated to have posted consolidated sales of 19.6179 trillion KRW and operating profit of 8.04 trillion KRW in Q4 last year, marking the highest quarterly figures ever. Korea Investment & Securities predicts that SK Hynix will maintain its position as the leading HBM stock this year as well.

Chaemin-sook, a researcher at Korea Investment & Securities, said, "Competitor Samsung Electronics has not yet fully entered Nvidia, the main customer of HBM," adding, "Since HBM accounts for more than 40% of DRAM sales, SK Hynix is expected to have the most stable performance among memory suppliers."

The second most purchased stock by high-net-worth individuals was Alteogen. They bought 19 billion KRW worth of Alteogen during the week. Alteogen's stock price rose to 455,500 KRW on November 11 last year but dropped to 274,000 KRW on the 20th of last month due to the impact of a patent lawsuit. This appears to have attracted bargain hunters.

Rainbow Robotics, favored by Samsung Electronics, ranked third among the stocks most net bought by high-net-worth individuals. After rising 15.23% on December 30 last year, it hit the upper price limit on the first trading day of the new year, January 2. It rose more than 10% again on the 3rd, with the stock price jumping from the 120,000 KRW range to the 230,000 KRW range in a short time. As a result, Rainbow Robotics overtook Ligand Bio to claim the 5th largest market capitalization in the KOSDAQ market.

This is due to the news that Samsung Electronics has become the largest shareholder of Rainbow Robotics, moving up from the second-largest shareholder. At the end of last month, Rainbow Robotics announced through a disclosure titled 'Stock Transfer Agreement Involving Change of Largest Shareholder' that Samsung Electronics' stake in Rainbow Robotics would increase from the existing 14.7% to 35%.

Lee Sang-soo, a researcher at iM Securities, analyzed, "Considering that the first exercise expiration date of Samsung Electronics' call option on Rainbow Robotics is March 2026 and the second is March 2029, it shows Samsung Electronics' strong intention to enter the robotics industry."

Peptron and Samyang Foods were also among the stocks picked by high-net-worth individuals. Peptron's stock price, which closed at 131,000 KRW on November 15 last year?nearly four times higher than the beginning of last year (37,200 KRW)?fell to the 90,000 KRW range, prompting bargain buying.

Samyang Foods recently predicted the birth of a 'king stock' in the securities industry by setting a target price of 1 million KRW. With the popularity of Buldak Bokkeum Myun spreading overseas, Samyang Foods' stock price surged nearly 230% last year. Positive forecasts that growth will continue due to strong export performance this year seem to have attracted high-net-worth investors as well.

At the end of last year, the securities industry raised target prices one after another, focusing on Samyang Foods' growth potential due to strong overseas exports. Kiwoom Securities raised its target price from 800,000 KRW to 950,000 KRW. DS Investment & Securities also raised it from 720,000 KRW to 850,000 KRW. Jang Ji-hye, a researcher at DS Investment & Securities, said, "Exports to China were steady due to the peak season effect, and exports to the U.S., which have a higher average selling price (ASP), increased, so external growth and improvement in gross profit margin (GPM) are expected."

In addition, high-net-worth individuals added Techwing, Ligand Bio, Samsung SDI, Samchundang Pharmaceutical, and SOS Lab to their portfolios. Samsung Electronics, which often appeared in the top net purchase list of high-net-worth individuals, did not even make it into the top 10 this time.