Investment Strategy Brief — 2026-05-13
Here is a quick breakdown of the latest brokerage analysis for our portfolio. As the KOSPI hits a pause near the 8,000-point mark, we’ve covered the recent performance and price target shifts for key holdings like SK Hynix, Lotte Chemical, Krafton, and Seegene.
Investment Strategy Summary — 2026-05-13
Large-Cap and Core Holdings Report
SK Hynix — Strong Buy
Mirae Asset Securities analyst Kim Young-geon stated in a report published on May 11 that SK Hynix has over 60% upside potential from its current share price. According to the report, SK Hynix is projected to reach an operating profit of 398 trillion won next year (2027). The stock jumped 12% during trading, touching 1.9 million won, fueled by strong market optimism.
Lotte Chemical — Price Targets Raised
Following Lotte Chemical's return to profitability after 10 quarters, brokerages have uniformly raised their price targets. While oversupply from expansion in China and Southeast Asia previously pressured performance, the rising product prices due to the US-Iran conflict have acted as a turning point. Seoul Economic's 'Jup-Jup Report' noted a market consensus that the company has "passed the bottom."
KOSPI Market — Valuation Normalization
After reaching 7,999 points, the KOSPI entered a consolidation phase, falling by 2%. Maeil Business Newspaper reported that "despite 5.6 trillion won in net foreign selling, the KOSPI P/E remains below 9x, making it undervalued compared to the US and Japanese markets," and experts maintain that "upside potential still exists."
Alpha Economy analyzed that as the valuation normalization continues, portfolios are expanding to focus on high-performing stocks.
Biotech and Tech Growth Stocks
Seegene — Q1 Earnings Surprise and #1 Brand Reputation
Driven by solid growth in non-respiratory products, Seegene exceeded market expectations for profitability in Q1.
- Q1 Revenue: 129.1 billion won
- Q1 Operating Profit: 23.6 billion won (up 59% YoY)
- While respiratory product sales dipped due to seasonality, growth in the non-respiratory portfolio offset the decline.
- Ranked #1 in brand reputation for listed life science service companies in May 2026 (up 22% from the previous month).
According to Medicopharma, Seegene has successfully rebounded while maintaining its shareholder return policy, with high growth in non-respiratory sales expected to continue.
Kakao — Record Q1 Earnings, Mixed Price Targets
Although Kakao posted its highest-ever Q1 earnings in 2026, brokerage price targets remain split due to uncertainty regarding AI monetization.
- Q1 Revenue: 1.9421 trillion won (+11% YoY)
- Q1 Operating Profit: +66% increase YoY
Infostock Daily noted that AI monetization is the key variable moving forward, with some brokerages raising their price targets while others have adopted a more conservative stance.
Krafton — 'Subnautica 2' Wishlist Hits 5 Million
Digital Daily reported on May 12 that Krafton's new title 'Subnautica 2' has surpassed 5 million wishlists ahead of its early access launch, with pre-downloads now available.
Krafton previously reported its highest quarterly earnings ever for Q1 (disclosed on April 30), with revenue of 1.3714 trillion won and an operating profit of 561.6 billion won. Verifying the new title portfolio, including Subnautica 2, is a key objective for 2026.
Industrial and Energy Sector Strategy
Hanwha Ocean — Profitability Improvement Expected
According to Hanwha Ocean's conference call notes (Naver Premium Content), expectations for performance are rising from Q4 due to normalized operations and strong orders, with continued growth projected for 2026. Specific price targets are not currently disclosed in public data, but the positive outlook based on consensus remains.
Green Chemical — Weak Performance, Debt Concerns
Green Chemical's 2025 revenue fell 7.9% YoY to 304 billion won, hitting a snag in growth. While operating and net profits improved slightly, the 35.5 billion won in short-term borrowings was flagged as a management risk.
DL E&C — AI Analysis Suggests 'Strong Buy'
According to AI investment analysis from Judal (judal.co.kr), DL E&C has been given a "Strong Buy" rating, with expectations for continued solid growth based on new growth engines (as of May 2, 2026). Note that this is AI-based analysis and should be distinguished from official brokerage reports.
Overall Investment Direction
The KOSPI hit 7,999 points before entering a 2% correction, but most experts believe there is still room for further upside in terms of valuation, with the P/E remaining below 9x compared to the US and Japan.
Positive Signals:
- SK Hynix: Mirae Asset significantly raised the target price, suggesting 60% upside.
- Lotte Chemical: First profit in 10 quarters, with upward adjustments in price targets.
- Seegene: Q1 earnings surprise, with sustained growth in non-respiratory segments.
- Krafton: Record-breaking quarterly earnings + excitement for new title performance.
Cautions:
- Short-term volatility due to factors like 5.6 trillion won in net foreign selling.
- Kakao: Divergent price target opinions due to AI monetization uncertainty.
- Hanwha Ocean detailed price target: Awaiting data.
- Some industrial sector stocks like SungEel HiTech and Yunseong F&C: Awaiting data.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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