Samsung Electronics Leads Net Buying as Top 1% Sell SK Hynix

Samsung Electronics topping net buying does not indicate broad-based buying across the semiconductor industry sector, but selective supply-demand (order flow) reflecting divergent expectations for individual stocks. According to Mirae Asset Securities data reported by Maeil Business Newspaper Securities, investors in the top 1% by stock-investment returns bought Samsung Electronics and other stocks on the morning of Nov. 4 while selling SK Hynix and others. Investors should focus less on the industry sector’s overall direction and more on the divergence between stocks simultaneously attracting buying and selling.

Why Samsung Electronics Was Bought While SK Hynix Was Sold

This elite-investor supply-demand (order flow) data ranks net buying and net selling by a group of top-performing investors at a specific point in time. As of 9:30 a.m. that day, Samsung Electronics ranked first in net buying after its share price had fallen nearly 20% over the previous month. The available data establishes only that funds flowed into the stock after the decline. It does not disclose the exact net-buying amount, number of shares, or individual investors’ transaction details.

The buy list included Samsung SDI, Samsung Electro-Mechanics, and Simmtech. Samsung Electro-Mechanics ranked third in net buying that day, while Simmtech ranked fourth. Conversely, SK Hynix, OCI Holdings, Koses, SK Square, and TSE were among the stocks sold. The split between buying and selling within the same trend points more strongly to stock-specific selection than to semiconductor-related stocks moving together.

AMD had also issued fourth-quarter earnings guidance the previous day that exceeded market expectations. However, without specific guidance figures, there is insufficient basis to translate it into earnings changes for individual Korean companies. If AMD’s guidance is followed by continued supply-demand (order flow) into Korean stocks, it could help indicate whether investor sentiment will persist. Still, a ranking captured at one point in time cannot establish the direction of actual earnings.

HYBE Ranks Fifth in Net Buying as Concert Revenue Outweighs Buzz

HYBE ranked fifth in net buying that day. The rationale was not merely attention around its artists, but the demonstrated profitability of its concert business. HYBE’s third-quarter revenue rose 109.8% year over year to 1.5257 trillion won, while operating profit swung to a profit of 188.5 billion won. The conversion of revenue growth into operating profit reveals a different investment thesis from that of Samsung Electronics.

Park Jun-hyung, an analyst at SK Securities, said the growing concert contribution and a quarter-over-quarter improvement in operating margin confirmed that top-line expansion was translating into profit. With BTS’s world tour concentrated in North America and Europe and tours by ENHYPEN, KATSEYE, and CORTIS overlapping, HYBE posted record concert revenue of 726.8 billion won. This figure supports the view that fandom interest translated into concert revenue and that this business growth, in turn, generated profit.

Stocks to Distinguish on the Buy and Sell Lists

• Samsung Electronics: It ranked first in net buying as of 9:30 a.m. that day. The key point is that it rose to the top of the buy list after falling nearly 20% over the previous month.
• Samsung SDI, Samsung Electro-Mechanics, and Simmtech: These stocks were bought by the elite investors. Samsung Electro-Mechanics ranked third and Simmtech fourth, while Samsung SDI’s exact ranking was not provided.
• HYBE: It ranked fifth in net buying after reporting higher third-quarter revenue, a swing to operating profit, and record concert revenue.
• SK Hynix, OCI Holdings, Koses, SK Square, and TSE: These stocks were sold at the same point in time. Because the data does not disclose the amounts or number of shares sold, the intensity of selling cannot be compared.

Indicators to Watch for the Next Assessment

If buying in Samsung Electronics continues, it will provide a basis for distinguishing one-off bargain hunting from a sustained shift in supply-demand (order flow). For Samsung Electro-Mechanics and Simmtech, the next checkpoint is whether they remain near the top of the net-buying rankings; for SK Hynix and the other stocks sold, it is whether the selling persists. For HYBE, the key question is whether a larger concert contribution and improving operating margin continue in subsequent earnings.

This data showed favorable supply-demand (order flow) signals for Samsung Electronics and HYBE, but the same conclusion cannot be applied to every related stock. For the rankings to support a buying case, subsequent supply-demand (order flow) and earnings must move in the same direction. For now, investors should distinguish between buying after Samsung Electronics’ decline and buying after HYBE’s earnings, then update their assessment based on subsequent moves in the sell list, including SK Hynix.

This article was automatically summarized and analyzed from the original news report. View the original article (Maeil Business Newspaper Securities)