Daily Brief Equity Bottom-Up: Trading Strategies on Samsung Electronics and SK Hynix Amid Heightened Competition from CXMT and more

• In this insight, I provide a near-term trading strategy on Samsung Electronics and SK Hynix amid heightened competition from CXMT.
• Prior to its 3Q 2026 conference call, I expect Samsung Electronics to trade in a box trading range of about 210,000 won to 240,000 won per share.
• I also expect SK Hynix to trade in a box trading range of about 1,300,000 won to 1,520,000 won prior to the the 3Q 2026 conference call. 

• We estimate that TSMC’s revenue could grow by approximately 40%–43% YoY in 2026.
• 2027 growth remains dominated by AI and its the only Key Growth Driver  
• The Key Question: What Will Happen in 2028? Investment Slightly Exceeds Near-Term Demand — Our Preferred Scenario

• After the decision to close down the US business, Guzman Y Gomez (GYG AU) share price rallied as investors felt the relief. 
• Sales and EBITDA added double digits YoY, and the share price reflected the growth. 
• After the big rally, GYG is trading at 45x PER and 1.7x PEG which is a little steep. No need to buy right now, best to observe the next result.

• Nanya reported Q326 revenues of NT$133,649 million, up 61.9% QoQ and up 611.7% YoY.
• Gross profit was NT$114,482 million, with a gross margin of 85.7%, up 6.2 percentage points QoQ and up 67.2 percentage points YoY.
• ASPs rose more than 60% QoQ and more than 500% YoY, almost entirely reflecting the renewal of long-term agreements (LTAs) at materially higher prices.

• Vitzrocell Co., Ltd. (082920 KS) is a global top-three manufacturer of lithium primary batteries (Li/SOCl2 and Li/MnO2) and high-reliability defense power sources, commanding an estimated ~80% domestic South Korean market share and holding the #1 global market share in smart grid utility metering infrastructure (AMI).
• The company demonstrates exceptional compounding fundamentals, delivering a 3-year revenue CAGR of 19.87% and a net income CAGR of 31.21% through FY2025 (FY2025 revenue of KRW 243.08B and net income of KRW 56.92B), supported by high EBITDA margins (>33%), strong free cash flow generation (KRW 52.19B in FY2025), and a pristine net-cash balance sheet.
• A transformational multi-year growth runway is emerging from Vitzrocell‘s KRW 122B strategic capital expenditure program, expanding production capacity into high-density batteries for loitering munitions (suicide drones) and advanced supercapacitors (EDLC/LIC) for AI data center power management, driving diversification beyond traditional utility metering.

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• Not my usual kind of company I often write about Japanese and Korean companies that nobody has covered in English before.
• Ai Robotics is a bit different. It publishes its results and IR materials in English, and Philipp Haas, a fund manager and Substack author, has already written it up and owns the shares in his fund.
• On top of that, I usually avoid AI, robotics and chip stocks, but this business is not what the name suggests.

• EEKA Fashion (3709 HK) has diversified away from only golf apparel and has successful on building apparel brands for other sports. 
• Their online sales only make up to 20% of the total sales, while the peers reached 30-40%; thus, the unit of profitability is lagging behind. 
• Currently, it lacks a catalyst for a buy while it is too risky to short sell Eeka after a period of underperformance to the peers. 

• For “Factory 2” engagements, Synopsys collects upfront priority/customization fees and secures volume-based royalties once chips enter production. Royalties carry 100% gross margin and will begin ramping in FY28/FY29
• Outcome-Based Revenue Sharing (Lane 3): OpenAI hosts the model/compute, and Synopsys splits revenue on a service basis derived from the Power, Performance, and Area (PPA) improvements achieved by the model
• AI models cannot validate physics; they require Synopsys’ core software (and Ansys sign-off tools) for fidelity checkpoints, placement, routing, and GDSII sign-off. Consequently, AI increases rather than decreases EDA usage.

• We initiate coverage of Mewah International with a Hold rating and a 12-month price target of SGD0.238, 2.9% below the last close.
• Mewah is a Singapore-listed edible-oil refiner and packer with no plantations, so it earns a processing spread rather than the commodity price.
• The business is recovering, and at SGD0.245 the shares already sit within our fair valuation range, with a total return to target of −0.2% including forecast dividends.

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