However, since the interest rates and China issues that caused the U.S. stock ma

Good morning....

I've been out of my mind over the weekend with the Middle East... there was a little bit of breaking news just now, but I'm seeing that the worst is over for now.

However, since the interest rates and China issues that caused the U.S. stock market to fall last Friday remain the same, the Korean stock market is expected to start the gap today or weakly....

I expect that there will be a trend of reducing some of the drop during the day after that....

The market is not easy in April, but I hope you all cheer up... ^^

2024.04.15 (월) Today’s Reports

🟥<<Morning Meeting Brief>>

https://lrl.kr/gfni

🔵[Promising investment stocks/ETF/fund (week 3 of April)]

[Mid- to long-term prospects]
- Confirmation of the end of the rate hike cycle
- Increased Short-Term Volatility Opportunities to Increase Investment Weight in Stocks

[Short term outlook and investment strategy]
- Global financial markets likely to expand volatility in Q2 as U.S. rate cut expectations retreat
- In the short term, monetary policy more hawkish than the U.S. central bank's dot plot is expected to be somewhat excessive
- U.S. Expects Short-Term Stock Market Rebound On Slack Real Indicators in China

https://tinyurl.com/cknd7yd8

🟥<Macro/domestic strategy/global strategy/raw materials/bonds/FX>>

🔵[Macro Lee Ha-yeon] US/non-US differentiation toward peak

- The global economy showed a manufacturing-oriented expansion, while prices differentiate between the U.S. and non-U.S
- Fed rate cut timing expected to retreat on U.S. prices exceeding expectations
- Despite the delay in interest rate cut expectations, expectations for the performance season are valid for favorable economic indicators

https://tinyurl.com/26ld89a5

🔵[Domestic Strategy Lee Kyung-min] Difference between Q2 Strategy and April Strategy

- Q2 Strategy: Buy on Adjustment; Active Overweight Below 2,600 KOSPI
- April Tactics: Profit-taking, short-term trading focused above KOSPI's 2,750 mark
- Expectations for sharp rate cuts retreat. Interest rates, dollar stabilization & growth stocks expected to rebound when reaction unfolds

https://tinyurl.com/2ym8xhuq

🔵[Global Strategy Moon Nam-jung] U.S. Q1 Earnings Season Opens. Change Eyes

- The announcement of earnings results of large financial stocks began on April 12. (Monetary policy → corporate earnings)
- S&P 500 EPS growth rate in the first quarter, IT, communication, and economic consumer goods maintain improvement
- Current U.S. Stock Exchange Stimulates Inflation Risks; Earnings Expectations React After Entering Earnings Season

https://tinyurl.com/296yw3mv

🔵[Romaterial Choi Jin-young] Good gold, but now it's time to focus on silver and copper

- China retail investors drive upbeat gold mid- to long-term direction and gold price gains this year
- However, in the short term, 1)Bumpy prices 2)Competitor BTC 3)Beware of the possibility of demand departure
- Rather, it is time to focus on silver and copper, which are in higher demand for industrial orientation than gold, considering the bottom-mined manufacturing economy

https://tinyurl.com/2bsybt7h

🔵[Romaterial Choi Jin-young] The possibility of a renewed Middle East war focuses on responses by scenario rather than prediction

- Iran's first ever direct attack on Israel's mainland, Israel warns of possible response
- Iran considers blocking Strait of Hormuz in retaliation, possibility of re-enactment of first oil shock Up
- However, both the U.S. and Iran avoid expansion. It is necessary to respond by scenario rather than prediction

https://tinyurl.com/2997spus

🔵[Collapse of bonds] As much as expectations for delayed reduction

- Surge on expectations of a key rate cut due to higher-than-expected prices
- Lower forecast on timing and width of cut. U.S. benchmark interest rate expected 5.00% at end of 2024
- Cuts themselves are valid; buy-in response to the end of the hike cycle is still valid

https://tinyurl.com/2d2wyo9n

🔵[FX Lee Ju-won] USD won exchange rate that broke the all-time high

- U.S. CPI Surprise in March Dies June Cut Expectations, Dollar Strong Record
- The won is vulnerable to volatility against major currencies. Significant weakness against the euro and yen is observed
- China physical indicators and U.S. bond bids expected to affect this week

https://tinyurl.com/27hwcwgk

🔵[Bond Joint Agreement] April Monetary Policy Board: More pronounced cut stance, higher price uncertainty

- The Monetary Policy Board's benchmark interest rate was frozen at 3.50 percent in April. It is the 10th consecutive time since January 2023
- The shift to a downward trend is one more step, but we need to look at prices, the Fed, and more
- What is clear is the approach from the perspective of bond purchases, but the method responds by installment purchases

https://tinyurl.com/2xlv2nrx

🟥<Industry and Stock Analysis>>

🔵[Small Cap Park Jang-wook] [Industry Report] Rebuilding the Nuclear Value Chain and Benefits of Korea's Nuclear Power

- In order to respond to the increased electricity demand in the U.S., additional 3 to 5 nuclear power plants are needed every year
- U.S. wants to rebuild nuclear power plants, but lacks construction capacity. South Korea can complement
- Top Pick: BHI to operate HRSG and nuclear aids business

https://lrl.kr/oDFQ

🔵[Small Cap Park Jang-wook] [Company Analysis] BHI: Adding Nuclear Power to HRSG

- The world's No. 1 manufacturer of HRSG. Boilers, nuclear power B.O.P, and other business operations
- 2024 will drive performance improvement due to increased installation of combined-fired power plants
- Nuclear B.O.P Oligopoly Expects Performance Level Up Due to Increased Nuclear Installation

https://lrl.kr/w1XF

🔵[Small Cap Park Jang-wook] [Company Analysis] Woo-jin: If nuclear power is large, so is the measuring instrument

- Operation of nuclear measuring instrument business. Korea's four major nuclear measuring instrument businesses
- Expected to benefit from orders for 4th to 11th APR-1400, a Korean nuclear power plant
- Demand for replacement is expected to increase due to increased utilization rate of nuclear power plants as well as new nuclear power plant orders

https://lrl.kr/krwC

🔵[Small Cap Park Jang-wook] [Company Analysis] Woojin NTech: Nuclear Maintenance + Dismantling Market Beneficiary

- Provision of plant measurement maintenance and commissioning works. 60% of sales occur in the nuclear energy sector
- Saeul Units 3 and 4 are expected to benefit from the measurement and maintenance sector due to commercial operation of 4Q24,4Q25
- Expired nuclear power, such as Gori Units 2 and 3, arrives. Expected to benefit from the possession of dismantling technology

https://lrl.kr/gfnC

🔵[Small Cap Park Jang-wook] [Company Analysis] Fisheries Industry: Nuclear Power Maintenance No. 1 + Power Plant Operation

- Korea's No. 1 (MS37%) Nuclear Measurement Control Facility Maintenance Business
- Orders are expected for Saeul units 3 and 4 scheduled for commercial operation at 4Q24 and 4Q25
- Seeking a new growth engine through the acquisition of a new power plant in Southeast Asia

https://lrl.kr/w1XO

🔵[Communication/Media Kim Hoe-jae][1Q24 Preview] CJ ENM: Starting with TVing, one step at a time

- 1Q24 sales forecast 1.1 trillion won (+14% yoy) and OP 7.3 billion won (black war yoy)
- 1Q TVing-oriented recovery begins. 2Q TV and F/S recovery in earnest
- OP 24E 234 billion KRW (+2.5 billion KRW yoy). TVing and F/S forecast +2.2 billion KRW

https://tinyurl.com/27eljsuh

🔵[Electrical and Electronic/IT Park Kang-ho][1Q24 Preview] MCNEX: 1Q Propaganda, Silently Improve Profitability…

- 1Q24 sales (KRW 288.6 billion)/operating profit (KRW 10.1 billion) are expected to exceed consensus
- Galaxy S24 sales boom and full-length sales growth continue
- 2024 Operating Profit Up 109.4% (yoy) Estimated, Continues Profitability Improvement

https://tinyurl.com/2bw9pl8u

🔵[Electric and Electronic/IT Park Kang-ho][1Q24 Preview] LG Innotek: The Rebounding Opportunity Is Coming…

- 1Q24 Operating profit (KRW 171.7 billion) is estimated above consensus and is in the process of raising it
- Apple's WWDC Attention In June, On-Device AI Adoption Expected
- Valuation Undervalued, Maintains Focus and Overweight in Second Half

https://tinyurl.com/23qscuv6

🔵[Pharmaceutical/Bio Lee Hee-young][1Q24 Preview] Yuhan Corporation: Both earnings and momentum rise toward second half

- 1Q24 Expected to slow profit due to increased costs and decreased technology fees revenue
- Razertinib Milestone Inflows In Second Half Of The Year Expected To Be Good
- Announcement of the results of Phase 1b of allergy treatment in the second half of the year and effective momentum for technology transfer

https://tinyurl.com/25woqcx5

🔵[Pharmaceutical/Bio Lee Hee-young][1Q24 Preview] Celltrion: Sales of Gympentra will be confirmed from Q2

- First-half earnings weaken profitability as PPA amortization costs rise following merger
- On 4/8, Zimpentra completed the registration of one of the top three PBMs in the United States
- Q2 Zimpentra Revenue And Additional PBM Listing News Watch

https://tinyurl.com/24ykyqwk