Top Picks of the First Week of the New Year... IT, Mobility, Bio, and Games 'In Focus'

[Asia Economy Reporter Lee Seon-ae] Samsung Securities recommended Samsung Electronics, LG Electronics, LG Innotek, Daeduck Electronics, Kia, SK Innovation, Hyundai AutoEver, Samsung Biologics, ST Pharm, and Pearl Abyss as top pick stocks for the first week of the new year.

According to Samsung Securities on the 2nd, this year our market is expected to be led by the IT, mobility, bio, and game sectors.

In the case of IT, Korean tech companies have been undervalued due to their hardware-centered business structure. Shin Seung-jin, a researcher at Samsung Securities, explained, "Recently, our IT companies are expanding investments in new growth industries such as non-memory semiconductors, AR/VR, and automotive electronics," adding, "While profit growth is important, stock prices respond quickly when the multiples assigned by the market increase, which is why IT was the top investment priority in 2022."

The next area to pay attention to is mobility. Last year, despite record-high performance by automakers, they were sluggish, and domestic battery cell companies also failed to escape weakness. However, mobility companies at the early stage of growth are the top investment priority. Hyundai Motor Group is expected to be re-evaluated due to the upward revision of electric vehicle sales targets, and battery companies, which were sluggish due to supply-demand issues rather than core business growth, are likely to emerge as leading stocks in our market in 2022.

The bio and game sectors require careful stock selection. In bio, CMO companies are key. Demand for contract manufacturing from global pharmaceutical companies is increasing, but competitively scaled CMO companies are limited. Researcher Shin said, "In games, the performance gap between companies that presented the vision of the P2E model last year and those that did not was stark," adding, "This differentiation by stock is expected to continue this year as well."

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