[Click eStock] "Untact Beneficiaries Due to COVID-19, Increased Interest in 5G Equipment Stocks"

[Asia Economy Reporter Oh Ju-yeon] Hana Financial Investment emphasized that due to the increase in frequency usage caused by traffic growth worldwide amid the novel coronavirus disease (COVID-19), it is time to pay attention to 5G network equipment stocks in the second half of the year.

According to Hana Financial Investment on the 15th, domestic game traffic in April increased by 94% compared to the previous year, and smartphone broadcasting viewing time from January to April rose by 23% year-on-year. It is analyzed that the biggest beneficiaries of the untact culture expansion caused by COVID-19 will naturally be 5G equipment stocks.

Researcher Kim Hong-sik predicted, "If we shift our perspective to second-half earnings, a resilient stock price rise is expected."

Researcher Kim said, "As part of the Seoul Smart Seoul Network (S-Net) construction project, the introduction of the latest Wi-Fi 6 and government 5G network quality tests are scheduled," and forecasted that network investments by the three major telecom companies will significantly increase after July.

Researcher Kim emphasized, "Network equipment exports to Japan, following domestic and China exports in June, could also be in full swing in July," and added, "Exports to the United States and India are also expected in the second half of the year, so I recommend switching to active buying." He also recommended KMw and Dasan Networks as buy picks among network equipment stocks this week.

Regarding telecom stocks, he advised focusing on increasing sector weight rather than individual stocks. SK Telecom’s substantial profit growth is expected to materialize from the third quarter, but a buying strategy based on dividend yield and price merit is recommended. KT’s purchase is considered valid due to the new CEO’s management philosophy and performance recovery. LG Uplus showed favorable first-half results, and the outlook for this year’s performance is optimistic, with expectations for industry improvement leading to a resilient stock price rebound.

This content was produced with the assistance of AI translation services.