Asia Pacific Credit Update: 2026 Korea Conference Takeaways for credit investors

研报英文原文证据摘录

Asia Pacific Credit Update: 2026 Korea Conference Takeaways for credit investors

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Super-cycle of HBM/DRAM continue into 2027

Industry expert believes the memory super-cycle will persist into 2027, with supply ESS: energy storage system

tightness potentially worsening as AI server demand accelerates. The outlook is HBM: high bandwidth memory

supported by strong HBM and conventional DRAM demand, limited new capacity before

end-2027, and declining inventories. HBM pricing could rise sharply in 2027, in his view.

DRAM pricing has also surged on server DDR5 demand, with customers prioritizing

supply security and accepting price hikes and long-term agreements.

Key highlights from corporate meetings

Most issuers expect QoQ earnings improvement in 2Q, such as LG Chem,

supported by continued positive inventory lag effects, and LG Energy Solution, driven by

ESS growth. LG Electronics also sees upside to its 2026 profitability. However, KEPCO’s

margins remain constrained, with higher energy costs likely to weigh on 2H results,

while POSCO expects only limited 2Q margin improvement. Capex trends are

diverging. Autos, utilities, telecom/AI-related issuers and data-center-linked sectors are

increasing investments in areas such as grid upgrades, renewable power development

and AI infrastructure. By contrast, petrochemical and battery issuers are moderating

capex after heavy investment cycles. Despite this divergence, financial discipline was

a consistent message across meetings. Issuers are prioritizing credit rating stability,

debt repayment and disciplined capital allocation to fund their strategic growth areas.

Trading ideas and investment strategies discussed herein may give rise to significant risk and are

not suitable for all investors.