Individual investors net bought nearly 2 trillion won in the domestic stock market for two months from November to December last year. While the KOSPI index surged from the 2400 line to the 2800 line, the proportion of investment continued to increase. It mainly contains Korea’s leading stocks that are expected to improve earnings this year. Samsung(81,000 +3.45%) Naver(292,500 +3.36%) Hyundai Motor Company and others are representative. More and more people are wondering how to take their stock portfolio for the new year. Stock market experts ordered to hold or overweight the top individual net buying stocks, and the biggest interest of individuals is the direction of Samsung Electronics’ share price, which has reached an all-time high. According to the Korea Exchange on the 3rd, last year, individuals net bought Samsung Electronics stocks worth 15,696.4 billion won, combining Samsung Electronics (9,5951 billion won) and Samsung Electronics preferred stocks (6,101.3 billion won). During the two months of November-December, when Samsung Electronics has risen the steepest in history, it has bought nearly 4 trillion won. Considering that the total net purchase amount of individuals during the same period was less than 2 trillion won, it means that there were many investors who took a portfolio centered on Samsung Electronics at the end of the year.
Samsung Electronics’ outlook this year is bright. With the rebound in DRAM prices in 1Q, expectations are high for the semiconductor supercycle. The foundry (semiconductor contract manufacturing) business and the 5G (5G) mobile communication equipment division are also expected to increase growth potential. Earnings forecasts are gradually rising. Samsung Electronics’ operating profit consensus this year reached 46,629.8 billion won, a 27.1% increase from last year (estimated).
The main concern for investors is whether it is preferred stock or common stock. Individuals net bought Samsung Electronics Wooman worth 2.8 trillion won in November-December last year. It is 1.4 times more than Samsung Electronics (1,159.3 billion won). There were many investors looking for dividends. Samsung Electronics Woo’s dividend yield based on the closing price last year was 1.92%, higher than Samsung Electronics’ (1.74%).
Considering the low interest rate and dividend payout ratio, preferred stock investments are attractive to long-term investors. However, if the bull market unfolds at the beginning of the year, common stock investors are expected to benefit. Samsung Electronics Woo usually moved at around 80% of Samsung Electronics’ prices. It is 82.0% based on the closing price in 2018 and 81.3% based on the closing price in 2019. Last year, it increased to 90.8% based on the closing price. It is the highest level ever. In a bull market, the gap between common and preferred stocks could widen again.
Another concern is Naver and Hyundai(192,000 +0.79%)All. Individuals net bought 2,524 trillion won worth of Naver shares last year. It ranks fourth in the top net buying stocks. In the two months from November to December, it net bought 3795 billion won. Third, it is an item that individuals bought the most. However, during this period, the stock price growth rate did not even reach 1%. Naver’s stock price fell 15.71% from the mid-day high (347,000 won) on August 27 last year.
This is due to the fact that there has been a large rise in the past and concerns over an increase in cost have overlapped. This year, all sectors, including commerce and fintech, are expected to grow evenly. This year’s operating profit consensus is expected to increase by 21.7% from last year to KRW 1.4 trillion. Lee Min-ah, a researcher at Daishin Securities, said, “The quarterly operating profit is stagnating as the point costs paid by Naver Pay increase.”
Hyundai Motor Company was a stock that individuals bought last year worth 2,589.9 billion won. It was the third most bought after Samsung Electronics and Samsung Electronics. Demand for Hyundai Motors is expected to increase again in the domestic and North American markets. Hyundai Motor’s operating profit consensus this year is expected to reach 6,759.5 billion won, up 134.7% from last year. This number reflects the foreign exchange loss caused by the weak dollar. If the won-dollar exchange rate rises, earnings forecasts may rise.
Investor interest is focused on the growth potential of electric vehicles. Ioniq 5, the first new car based on the electric vehicle platform (E-GMP), is expected to be released in February. The securities industry believes that valuation (the level of stock price compared to earnings) could be revaluated depending on market reactions.
KT&G was the fourth most bought item by individuals from November to December last year.(83,100 -0.24%)Was. I bought 3726 billion won. It is a favorite of investors seeking steady dividends and stable share price flow. The dividend yield based on the closing price of last year reached 5.53%. This year’s earnings are also expected to increase steadily. This year’s operating profit consensus was aggregated to 1.568.5 billion won, up 7.6% from last year. The point of watching is the export volume. Daishin Securities researcher Han Yoo-jeong predicted that “this year’s export volume will increase by 20% from last year.”
Lotte Chemical is also a stock of interest. Individuals bought 2255 billion won for two months from November to December. Expectations to improve the chemical industry raised the share price. This year’s operating profit consensus is expected to rise 271.0% compared to last year to KRW 1.3448 trillion. Lee Jin-myung, a researcher at Shinhan Investment Corp. analyzed, “The current share price, which is at the level of 0.67 times the net asset ratio (PBR), has room to rise to the level of 0.9 times.”
Reporter Yoon Sang Ko [email protected]