Selective Strategy Needed After Undervaluation Eases...If You Have Found Stocks to Keep in Your Basket

Analysis has emerged that the domestic stock market's price-to-book ratio (PBR) is approaching 2 times, indicating that a significant portion of the structural undervaluation has been resolved. Since the beginning of this month, domestic demand sectors such as banking, retail, insurance, and construction have shown stronger momentum than semiconductors. This is evaluated as share prices reflecting expectations for shareholder-return policies, as the perception of undervaluation and expectations for amendments to the Commercial Act have overlapped. In the past as well, a Kospi PBR of 2 times was reached only during limited periods, so the current level is interpreted as a meaningful zone.

However, as the valuation of domestic demand sectors has been normalized to some extent, it is advised that going forward, investors will need a selective strategy that considers profitability together with low PBR, rather than focusing solely on simple low PBR. Semiconductors and shipbuilding show clear earnings improvement but carry valuation burdens, while steel, energy, and distribution are pointed out as having profitability constraints despite being undervalued. In contrast, securities, utilities, cosmetics and apparel, automobiles, and construction are still recording low PBRs relative to their profitability, leaving them with relative attractiveness.

Meanwhile, interest in stock loans (stock-backed loans) is increasing day by day. This is because investors who do not want to miss a long-awaited investment opportunity are turning their attention to stock loans, which allow them to use more funds for stock purchases.

Another advantage of stock loans is that even if investors using margin or credit trading face a forced liquidation crisis due to a sharp stock price drop, they can simply switch over without providing additional collateral or selling their holdings, and then wait for a rebound.

◆ All New Stock Loan, from products with the lowest interest rate in the 5% per annum range to products exempt from DSR!

All New Stock Loan has launched a securities-linked credit product that anyone can use comfortably to experience stock loans at the industry's lowest interest rate in the 5% per annum range. It can be used not only for stock purchases but also for refinancing margin or credit balances at securities firms, and it can be leveraged up to four times, including the investor's own capital, without any differentiation by credit rating.

In addition, All New Stock Loan also offers a product that is not constrained by the DSR limit for investors who previously had difficulty using stock loans due to DSR restrictions. Investors who are using the alternative trading system (NXT) can also take advantage of this service.

Investors who want to know more about All New Stock Loan can contact the customer service center (☎1599-8666) and conveniently consult with a professional consultant at any time, regardless of whether the loan is ultimately approved.

○ Launched a product with the industry's lowest interest rate in the 5% per annum range!

○ Regardless of existing loan amount or income! (Not subject to DSR)

○ Ability to use up to four times the stock investment funds! (Including own capital)

○ Same-day immediate refinancing of securities credit or margin positions available!

○ Trading available on the alternative trading system (NXT)

○ Even stocks that were difficult to purchase with existing securities firm credit or stock loans are OK!

* All New Stock Loan Customer Service Center: 1599-8666

Direct link: https://allnewstockloan.co.kr?agency=HTS

EcoPro BM, Samsung Heavy Industries, Hanwha Aerospace, Samchundang Pharm, Hyundai Hims

※ The above content is unrelated to the editorial direction of The Asia Business Daily, and all responsibility lies with the information provider.