Semiconductor Stocks Draw Attention Amid Q2 Earnings Announcements

Performance Outlook and Export Boom Amid Stagnation
Yield Recorded at -0.36% Since Early Year
Samsung Electronics Earnings Announcement on the 7th as a Turning Point

[Asia Economy Reporter Song Hwajeong] The semiconductor sector is struggling to emerge from its slump. While the KOSPI rose to the 3300 level, the leading semiconductor stocks were left behind. Attention is focused on whether the semiconductor sector will dispel doubts about its performance and rebound with Samsung Electronics' preliminary Q2 earnings announcement scheduled for the 7th.

According to Daishin Securities on the 5th, the semiconductor sector index recorded a return of -0.36% since the beginning of the year as of the closing price on the 2nd, reversing into a decline. Its relative return compared to the KOSPI was -12.75%. Samsung Electronics fell 3.61% from the start of the year, and SK Hynix dropped 2.78%.

Both earnings forecasts and exports for the semiconductor sector are favorable. The Q2 operating profit forecast for the semiconductor sector has been revised upward for five consecutive weeks, surpassing the previous peak, and exports have also continued to increase month-over-month for two consecutive months. Semiconductor export value in June reached $11.159 billion, marking the largest scale since October 2018. Despite this strengthening fundamental momentum, stock prices remain sluggish due to market skepticism about earnings and selling by foreign and institutional investors. Institutions have net sold Samsung Electronics by 13.5846 trillion KRW this year, the largest amount sold. They also net sold SK Hynix by 2.5313 trillion KRW, the second largest after Samsung Electronics. Foreign investors have done the same, net selling Samsung Electronics by 11.6479 trillion KRW since the beginning of the year, the largest net sale. They also sold SK Hynix shares worth 571.4 billion KRW.

The turning momentum ultimately depends on Q2 earnings. According to financial information provider FnGuide, the market consensus for Samsung Electronics' Q2 operating profit is 10.9304 trillion KRW, a 34.18% increase compared to the same period last year. This is a 5.21% upward revision compared to one month ago. SK Hynix's Q2 operating profit consensus is 2.6818 trillion KRW, a 37.76% increase, revised upward by 1.69% compared to one month ago.

Lee Kyungmin, a researcher at Daishin Securities, said, "If Samsung Electronics' preliminary earnings on the 7th do not fall significantly short of expectations and the minutes of the U.S. Federal Open Market Committee (FOMC) scheduled for the 8th confirm that the Federal Reserve's stance is not as hawkish as feared, a turnaround in the semiconductor sector's sentiment will be possible."

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