US Hedge Fund: "Samsung, Hyundai Motor and Other Korean Companies Have Ample Stock Price Growth Potential"

Dalton Investment Dismisses Concerns Over Growth Limits of Korean Companies
"Buying Stocks During Q1 Market Correction"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Dalton Investments, a leading hedge fund in the United States, has evaluated that the stock prices of major Korean conglomerates, including Samsung, "still have ample room to rise."

On the 26th (local time), James Lim, senior analyst at Dalton Investments, an American activist investor, stated this in an interview with Bloomberg News.

This dismisses concerns that the Korean stock market and major conglomerate stock prices have risen so much that further growth is reaching its limit. Over the past year, the KOSPI index rose 56%, and the stock prices of major Korean conglomerates hit all-time highs, leading some investors to evaluate that the Korean stock market has risen too rapidly.

Analyst Lim cited that Samsung Electronics' price-to-earnings ratio is only half that of Apple, and Hyundai Motor is trading at 64% of its book value. He also explained that Dalton purchased shares of some Korean conglomerates during the correction phase in the first quarter. Although he did not specify which stocks were bought, he evaluated Samsung, Hyundai Motor, SK, and LG as "positive."

He added, "The management of Korea's four major conglomerates is improving, aiming to align operating profits with shareholder returns," and analyzed that "the fact that stock performance has begun to be made one of the key criteria for measuring business performance is also positive for future prospects."

Analyst Lim said, "The four major Korean conglomerates, including Samsung, have sufficient upside potential from a long-term investment perspective," citing SK Group and LG as examples. He supported this outlook by mentioning that SK Holdings, the holding company of SK, announced at its annual shareholders' meeting in March that it plans to increase its market value to 140 trillion won by 2025, which is seven times the current level. He also noted that LG's stock price surged 45% this year, thanks to efforts such as separating some business units with slowed growth to focus on advanced technology businesses like LG Chem.

Analyst Lim said, "The reason these stocks are attractive is that the market has not yet priced in these reform efforts," adding, "It may take another 3 to 5 years before they receive proper valuation."

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