Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Samsung Electronics reported sales of 171 trillion won (up 129.3% YoY, 2% lower than consensus) and OP of 89.4 trillion won (up 1,810% YoY, 5.4% higher than consensus) in 2Q26.</li>
<li>Despite the better than expected performance in terms of operating profit, Samsung Electronics missed the consensus sales estimate by 2% in 2Q 2026. </li>
<li>If Samsung Electronics outperforms SK Hynix by 20%-25% or more in the coming months, this could be one of the signs of a potential slowdown in the semiconductor sector.</li>
</ul>


Samsung Electronics reported sales of 171 trillion won (up 129.3% YoY, 2% lower than consensus) and OP of 89.4 trillion won (up 1,810% YoY, 5.4% higher than consensus) in 2Q26.
Despite the better than expected performance in terms of operating profit, Samsung Electronics missed the consensus sales estimate by 2% in 2Q 2026. 
If Samsung Electronics outperforms SK Hynix by 20%-25% or more in the coming months, this could be one of the signs of a potential slowdown in the semiconductor sector.


Samsung Electronics 2Q26 Earnings & Watch Out for SK Hynix Underperforming Samsung by 20%+

Equity Derivatives

<ul>
<li>It has been reported that the 2x single stock leveraged ETFs for Samsung Electronics and SK Hynix now account for more than 25% of all ETF trading value in Korea.</li>
<li>High demand for the 2x single stock leveraged products has been one of the key reasons for the higher volatility in the Korean stock market in the past several weeks. </li>
<li>The 2x single stock leveraged products have significantly UNDERPERFORMED both Samsung Electronics and SK Hynix from 27 May to 3 July. </li>
</ul>


It has been reported that the 2x single stock leveraged ETFs for Samsung Electronics and SK Hynix now account for more than 25% of all ETF trading value in Korea.
High demand for the 2x single stock leveraged products has been one of the key reasons for the higher volatility in the Korean stock market in the past several weeks. 
The 2x single stock leveraged products have significantly UNDERPERFORMED both Samsung Electronics and SK Hynix from 27 May to 3 July. 


2X Single Stock Leveraged ETFs Now Account for More than 25% of All ETF Trading Value in Korea

Samsung Electronics Pref Shares / Equity Bottom-Up

Samsung Electronics Pref Shares (005935 KS)

<ul>
<li>In this insight, I discuss numerous gap trade opportunities involving Korean preferred and common shares in 3Q 2026.</li>
<li>The preferred companies' share price discount (relative to the common shares) on the 27 pairs below was 47.2% as of 3 July 2026.</li>
<li>Among these 27 pairs, there were 26 common shares that outperformed preferred shares in the past six months (96%).</li>
</ul>


In this insight, I discuss numerous gap trade opportunities involving Korean preferred and common shares in 3Q 2026.
The preferred companies' share price discount (relative to the common shares) on the 27 pairs below was 47.2% as of 3 July 2026.
Among these 27 pairs, there were 26 common shares that outperformed preferred shares in the past six months (96%).


Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 3Q 2026

Pan-Asia Tactical Market Calls (Quant-Driven), MRM Research

Nico Rosti

Pan-Asia Tactical Market Calls (Quant-Driven)

MRM Research

Quantitative Research

<ul>
<li>The recent <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> correction (14% from its recent peak) is probably over, our model predicts <strong>very</strong> limited downside risk remaining. However <strong>the rebound may be short-lived.</strong>
</li>
<li>Samsung secured long term HBM3E supply agreements and initiated volume production on its advanced foundry node, positioning the company to capture massive high margin global artificial intelligence memory demand. </li>
<li>Management confirmed ongoing evaluation of a new share buyback program to fund equity performance bonuses, which could establish a structural valuation floor despite intense domestic union compensation dispute issues.</li>
</ul>


The recent Samsung Electronics (005930 KS) correction (14% from its recent peak) is probably over, our model predicts very limited downside risk remaining. However the rebound may be short-lived.

Samsung secured long term HBM3E supply agreements and initiated volume production on its advanced foundry node, positioning the company to capture massive high margin global artificial intelligence memory demand. 
Management confirmed ongoing evaluation of a new share buyback program to fund equity performance bonuses, which could establish a structural valuation floor despite intense domestic union compensation dispute issues.


Samsung Electronics (005930 KS) Tactical Outlook: Correction Over But Upside Limited

Equity Long-Short

Mo Aziz

<ul>
<li>World's only producer simultaneously leading DRAM (#1), NAND (#1), and HBM (#2), with a 4nm in-house base die conferring cost advantages SK Hynix's TSMC dependency cannot replicate at scale.</li>
<li>HBM4 Nvidia qualification resolved the 2-year bear case; USD 1bn confirmed revenue resets the narrative; HBM4E qualification is the next multiple re-rating trigger.</li>
<li>BUY, KRW 400,000 PT (9.3x FY2026E EPS KRW 43,000); requires no heroic assumption — merely trading below Micron and historical average.</li>
</ul>


World's only producer simultaneously leading DRAM (#1), NAND (#1), and HBM (#2), with a 4nm in-house base die conferring cost advantages SK Hynix's TSMC dependency cannot replicate at scale.
HBM4 Nvidia qualification resolved the 2-year bear case; USD 1bn confirmed revenue resets the narrative; HBM4E qualification is the next multiple re-rating trigger.
BUY, KRW 400,000 PT (9.3x FY2026E EPS KRW 43,000); requires no heroic assumption — merely trading below Micron and historical average.


SAMSUNG ELECTRONICS (005930 KS): Initiate with a BUY (KRW 400,000)

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics Pref Shares (005935 KS)

Samsung Electronics 2Q26 Earnings & Watch Out for SK Hynix Underperforming Samsung by 20%+

Samsung Electronics reported sales of 171 trillion won (up 129.3% YoY, 2% lower than consensus) and OP of 89.4 trillion won (up 1,810% YoY, 5.4%...

Douglas Kim

2X Single Stock Leveraged ETFs Now Account for More than 25% of All ETF Trading Value in Korea

It has been reported that the 2x single stock leveraged ETFs for Samsung Electronics and SK Hynix now account for more than 25% of all ETF trading...

Douglas Kim

Samsung Electronics (005930 KS) Tactical Outlook: Correction Over But Upside Limited

Samsung Electronics (005930 KS)'s correction appears to be over. Our model sees limited downside risk remaining, but rally may be short-lived....

Nico Rosti

SAMSUNG ELECTRONICS (005930 KS): Initiate with a BUY (KRW 400,000)

SK Hynix leads in DRAM, NAND, and HBM production, with cost advantages from in-house 4nm base die, poised for multiple re-rating triggers and...

Mo Aziz

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Samsung Electronics 2Q26 Earnings & Watch Out for SK Hynix Underperforming Samsung by 20%+

Samsung Electronics reported sales of 171 trillion won (up 129.3% YoY, 2% lower than consensus) and OP of 89.4 trillion won (up 1,810% YoY, 5.4%...

Douglas Kim

2X Single Stock Leveraged ETFs Now Account for More than 25% of All ETF Trading Value in Korea

It has been reported that the 2x single stock leveraged ETFs for Samsung Electronics and SK Hynix now account for more than 25% of all ETF trading...

Douglas Kim

Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 3Q 2026

​Insight on Korean preferred and common share gap trade opportunities in 3Q 2026, with a 47.2% discount on preferred shares and 96% outperformance...

Douglas Kim

Samsung Electronics (005930 KS) Tactical Outlook: Correction Over But Upside Limited

Samsung Electronics (005930 KS)'s correction appears to be over. Our model sees limited downside risk remaining, but rally may be short-lived....

Nico Rosti

SAMSUNG ELECTRONICS (005930 KS): Initiate with a BUY (KRW 400,000)

​SK Hynix leads in DRAM, NAND, and HBM production, with cost advantages from in-house 4nm base die, poised for multiple re-rating triggers and...

Mo Aziz

Insight on Korean preferred and common share gap trade opportunities in 3Q 2026, with a 47.2% discount on preferred shares and 96% outperformance...

SK Hynix leads in DRAM, NAND, and HBM production, with cost advantages from in-house 4nm base die, poised for multiple re-rating triggers and...