J.P. Morgan South Korea FTM 18 May 26 Korean Reinsurance Company; ISU Petasys; Samsung Electronics; SK hynix; Global Memory Market; Equity Thematic Strategy and More

研报英文原文证据摘录

J.P. Morgan South Korea FTM 18 May 26 Korean Reinsurance Company; ISU Petasys; Samsung Electronics; SK hynix; Global Memory Market; Equity Thematic Strategy and More

Asia Pacific Equity Research

South Korea First to Market 18 May 2026

Top Stories

| Korean Reinsurance Company (MW Kim) (003690 KS, OW)

Upgrade to OW as underwriting recovery builds after a strong 1Q26 combined ratio print (74.6%, -

14.5%p oya)

We upgrade Korean Re to OW (from N) with a new Dec-26 PT of W17,000 (previously W12,000), based on 7x FY26E P/E. The

upgrade reflects a meaningful improvement in underwriting performance (1Q26 combined ratio: 74.6%, -14.5%p oya), as well

as better-than-expected underwriting results anticipated for the remainder of the year. The stock has been a material

underperformer YTD (14% vs. KOSPI: 78%), and we believe the current valuation of 5x FY26E P/E or 0.6x FY26E P/B appears

undemanding in the context of improving fundamentals. We identify several near-term catalysts: top-line growth recovery post

contract renewals in January and April; upward earnings revisions for FY26, given that 1Q26 net profit accounts for 78% of

FY26 Bloomberg consensus estimates; and potential upside to the current 6% dividend yield.

ISU Petasys (Sangsik Lee/Jay Kwon) (007660 KS, OW)

1Q result in-line; multi-lam capacity guidance revised up; raise PT to W185K

ISU’s 1Q earnings were in-line and the positive surprise came from management’s ~20% multi-lam capacity hike in 2027/28 by

converting its existing VIPPO capacity. Management guided that TPUv8 qualification is on track with HDI products currently in

sample with five other customers, including TPUv9. Refreshing our TPU top-down and bottom-up assumptions, we believe

ISU’s market share will fall to 21-23% in FY26-27E vs.