Thirteen research centers of Korean brokerage houses have selected five stocks that are likely to have good prospects for 2019. The five promising stocks for the Year of the Golden Pig were Samsung Electro-Mechanics, SK Telecom, Samsung SDI, Samsung Electronics and NC Soft.
1. Samsung Electro-Mechanics
Six brokerage houses forecast that Samsung Electro-Mechanics` stock price will be positive next year. It is predicted that MLCC (Multi-Layer Ceramic Capacitor) will boost Samsung Electro-Mechanics' performance. In particular, there were many securities companies that focused on MLCC, which is a part of the automotive sector. Considering that percentage of ADAS (Advanced Driver Assistance System) is increasing and sales of electric vehicles are increasing, demands for MLCC will inevitably increase.
2. SK Telecom
Expectations for 5G network still remain. 5G technologies will be commercialized in earnest starting from 2019 and SK Telecom's stock price has declined due to the recent bearish market. Another reason why SK Telecom was chosen as a promising stock is that discussion on 5G technologies will be more active at CES to be held in Las Vegas in January.
Four brokerage houses recommended Samsung SDI owing to expectations that electric vehicle markets would grow. With more regulations on carbon dioxide emissions, sales of electric vehicles are increasing in Europe, and many automobile manufacturers are predicting that this trend will be inevitable. Samsung SDI is also expected to benefit from the European Union's recent decision to reduce carbon dioxide emissions of passenger cars by 37 percent from the 2021 standard by 2030.
4. Samsung Electronics
Many chose Samsung Electronics as one of the most promising stocks in 2019. Although Samsung Electronics is currently trading at below the psychological support line of 40,000 won, it is certain that Samsung Electronics will be able to enter an upward trend in the second half of 2019. This is because investment by cloud service companies and Internet Data Companies (IDC) is expected to resume in the second half of 2019.
5. NC Soft
NC Soft was selected as a promising player in 2019 thanks to its new series of video games. The average target share price for NC Soft, which was presented by three brokerages, was 596,600 won. Lineage 2 M will be released in the second quarter of 2019, while Blade & Soul 2, Aion 2, Blade & Soul M, and Blade & Soul S will be released from the second half of 2019.