"Samsung Electronics and SK hynix are worth 7x and 10x PERs now" — expert says a KOSPI 10,000 level is not impossible

[Financial News] An analysis has emerged suggesting that KOSPI could reach 10,000 if the semiconductor rally continues, led by Samsung Electronics and SK hynix.

Yeom Seung-hwan, a director at LS Securities, appeared on the YouTube channel Kim Jakga TV on the 17th and said the valuations of Samsung Electronics and SK hynix remain low.
He said, "Samsung Electronics and SK hynix are trading at a price-to-earnings ratio of just under 7 times right now," adding, "I think they should be at 10 times." He went on to argue, "If the market gives them 10 times and Samsung Electronics and SK hynix also get around 10 times, then it is not impossible for KOSPI to reach 10,000 points."
Yeom also pointed out that operating profit at the two companies must hold up for the market to stay strong. He stressed, "The condition is that earnings must not weaken," and added, "As long as earnings are maintained, KOSPI can move toward 10,000."

KOSPI continued its relentless climb after breaking above the 9,300 level for the first time ever last week.
On the 20th, SK hynix closed at 2,769,000 won, up 84,000 won, or 3.13%. During the session, it surged to as high as 2,891,000 won, breaking its all-time high again just one day later and quickly surpassing the 200 trillion won market cap mark.
As shares of Samsung Electronics and SK hynix soared, their combined share of total KOSPI market cap rose to nearly 55%, leading analysts to say the semiconductor duo drove the KOSPI 9,000-point level.

Brokerages have also raised their target prices for both companies across the board, expecting the rally to continue for the time being.

gaa1003@fnnews.com Ahn Ga-eul Reporter