Foreign Investors Favor Ecopro, Individuals Choose Alteogen as Top Picks
Alteogen Awaits Transfer Listing, Ecopro Benefits from Subsidiary's Positive Outlook
This month, both individual investors and foreign investors have been increasing their bets on the so-called 'Cheonsdaq' rally, but they offered differing opinions on which sector will become the next market leader. Individuals are favoring bio stocks, while foreign investors are focusing on secondary battery stocks.
Amid growing expectations in the market for policies to revitalize the KOSDAQ, it was foreign investors who first boarded the 'Cheonsdaq' rally train. According to the Korea Exchange on December 16, foreign investors purchased 290 billion won worth of KOSDAQ stocks last month, and have already made net purchases exceeding 290 billion won so far this month.
In contrast, individual investors, who sold 480 billion won worth of KOSDAQ stocks last month while focusing on large-cap investments, have joined the buying spree this month by purchasing 312 billion won. When including trading volumes from NextTrade, the net buying by individuals on the KOSDAQ surpasses 630 billion won. Fueled by this enthusiasm, the balance of KOSDAQ margin loans exceeded 10 trillion won as of December 11, marking the highest level so far this year.
Jeon Kyun, Senior Research Fellow at Samsung Securities, explained the recent influx of funds into the KOSDAQ by stating, "The easing of interest rate uncertainties in December has created a favorable investment environment, and expectations for government policies to revitalize the KOSDAQ are rising." Bio and robotics sectors, which dominate the top ranks of KOSDAQ market capitalization, are considered growth stocks that benefit from a declining interest rate environment.
Although both individuals and foreign investors have boarded the 'Cheonsdaq' rally, their views diverge on which sector will take the wheel as the next market leader. So far this month, individuals have purchased over 100 billion won each of three KOSDAQ stocks- Alteogen (547.1 billion won), AimedBio (123 billion won), and G2GBio (107 billion won)-all of which are bio stocks. In contrast, Ecopro saw net selling of 372.6 billion won, making it the stock most heavily sold by individuals this month.
During the same period, foreign investors' bets on KOSDAQ leaders showed the exact opposite pattern. Foreign investors purchased 324.4 billion won of Ecopro, which is the top net-sold stock among individuals, making it their number one net purchase. Conversely, they sold 345.8 billion won of Alteogen, the top net-bought stock among individuals, making it their largest net sale. In addition, foreign investors bought robot stocks such as Robotis (96.8 billion won), Rainbow Robotics (90.8 billion won), and Klobot (70.7 billion won), which individuals have been selling.
As for Alteogen, the top pick among individuals, it is expected that additional demand may arise as the company prepares for a transfer listing to the KOSPI next year. Ecopro, favored by foreign investors, also has positive prospects for its subsidiary Ecopro BM. If the transfer listing is completed, Ecopro BM is expected to take over as the leading stock on the KOSDAQ.
Kim Seona, Research Analyst at Hana Securities, commented on Alteogen, "With the full-scale launch of Keytruda SC in the United States and Europe, the company is expected to stably receive royalties, making it unlikely for its operating profit margin (OPM) to fall below 50%. Alteogen has secured a position and conditions comparable to major pharmaceutical companies listed on the KOSPI." She raised the target price from 550,000 won to 640,000 won.
Ecopro BM is set to begin full-scale commercial operations at its Hungarian plant in the second quarter of next year. This marks the first case among domestic cathode material companies to establish a production base in Europe. Jung Jinsoo, Research Analyst at Heungkuk Securities, estimated, "With a favorable policy environment now established for local producers in Europe, the potential value of the company's European plant is at least 4 trillion won." He raised the target price from 190,000 won to 220,000 won.
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