"Rotational Buying in Semiconductors to Continue in July... Focus on Samsung Electronics and PCB Stocks"

There is an outlook that rotational buying in the semiconductor sector will continue in July. Analysts suggest that the short-term surge in SK Hynix shares will shift the valuation appeal to large-cap IT stocks, particularly Samsung Electronics.

Park Kangho, a researcher at Daishin Securities, stated in a report on the 30th, "SK Hynix shares have risen by 40.3% over the past month," and explained, "The burden of SK Hynix's short-term rally is expected to shift the focus to the valuation appeal of Samsung Electronics and the direction of operating profit improvement in the third quarter."

He added, "Price increases for legacy memory are also expected in the second half of 2025," and evaluated, "This is a period with strong earnings momentum due to the peak season for smartphones and displays."

He also predicted that the high likelihood of an extension of the mutual tariff suspension would have a positive impact. Park emphasized, "If we consider the possibility of extending the mutual tariff suspension and the potential for lower smartphone tariffs compared to previous levels, there is a possibility that the upward momentum centered on SK Hynix could spread to other IT companies, including Samsung Electronics."

He further assessed that expectations for the semiconductor sector in the second half of the year are also rising. With a shortage of DDR4 supply and the expansion of DDR5, demand for semiconductor packages is strong. As a result, expectations for improved performance are high for related PCB companies such as Simmtech, Daeduck Electronics, and Isu Petasys.

Park predicted that Simmtech, which has a high proportion of semiconductor PCBs for legacy memory, will report second-quarter sales exceeding consensus. In addition, Haesung DS is expected to see improved performance due to increased demand for automotive lead frames. Isu Petasys, which is expected to benefit from AI infrastructure, and Daeduck Electronics, which supplies AI accelerator and autonomous driving chip components, are also highlighted for their mid- to long-term growth potential.

He emphasized, "The upward trend driven by rotational buying is expected to continue in July," and added, "If the implementation of mutual tariffs is further extended, it will be necessary to temporarily increase the weighting of the electronics sector, with particular attention to semiconductors and Samsung Electronics."