"Now at a Price Range People Can Buy, KOSPI Will Hit 10,000"... Analyst Who Correctly Predicted the Correction Makes a Bold Forecast

[Financial News] An analyst who accurately predicted KOSPI's major correction a month ago has now issued a bold forecast that the index could reach 10,000 points. 

According to Kookmin Ilbo on the 24th, Lee Jae-man, head of the Global Investment Analysis Division at Hana Securities, said in an interview the previous day that the index is now at a "price range people can buy," and predicted that KOSPI could rise to 10,000 points after recovering its previous high.
Lee became a talking point in the market after publishing a report about a month before the correction began, identifying the point at which SK hynix's market capitalization, based on common shares, would surpass Samsung Electronics as KOSPI's peak.
In fact, on the 22nd of last month, when KOSPI closed at 9,114.55, SK hynix's market cap overtook Samsung Electronics. The next day, KOSPI fell 9.99% from the previous session to close at 8,203.84, entering a correction phase.

Lee said SK hynix, which has fallen 43% from its intraday peak, is "fundamentally different from 2022, when there were concerns about losses, and has fallen too far."
He added that a similar decline occurred around the turn from late 2022 to 2023, but that drop reflected fears of a shift into losses, making it different in nature from the current situation.
As the basis for his index outlook, he pointed to the earnings scale of listed companies. He noted that when annual net profit for KOSPI companies was in the 200 trillion won range, the index traded around 2,000 to 3,000 points. Based on this, he calculated that this year's estimated net profit of 740 trillion to 750 trillion won would justify an index level of 7,500 to 8,000 points.
He said 10,000 points is also possible, given that next year's net profit forecast is expected to exceed 1,000 trillion won.
He pointed out, "Even without considering difficult indicators such as the price-to-earnings ratio, KOSPI can reach 10,000 because the index is determined by the level of earnings."

He named Samsung Electronics and SK hynix as the stocks likely to lead the rebound. He said the market is still focusing on sectors with rapid earnings growth, and both companies are expected to continue growing next year.
Lee said, "If semiconductors regain the center and the stock market recovers, semiconductor materials, parts and equipment stocks, as well as power equipment stocks tied to AI infrastructure, will still retain leadership."
As an indicator for gauging future semiconductor stock prices, he pointed to operating profit margin. He said, "Everyone knows that an 80% operating profit margin cannot be sustained. Then the key is where the bottom is. For SK hynix, even an operating profit margin of 50% would allow it to command a higher multiple than TSMC."
Meanwhile, KOSPI closed the previous day at 7,096.89, up 299.19 points, or 4.40%, from the previous trading day, reclaiming the 7,000 level. 
[email protected] Seong Min-seo Reporter