By Korea has already returned to “business as usual” despite the recent shock from President Yoon Seok Yul declaring an emergency martial law.
While uncertainty still remains, investment firm Macquarie is convinced a number of Korean stocks are worth buying at current levels.
These include Kia, Hanwha Aerospace, and SK Hynix.
Here’s what each of these three names have in store for investors.
Kia Corp (KRX: 000270)
Macquarie expects shares of this Seoul headquartered automobile giant to gain as much as 80% by the end of 2025.
Analysts at the investment firm likes Kia stock primarily for its “resilient business outlook”.
Not only is it leading the global shift to electric vehicles, its conventional gas-powered cars continue to “generate above industry average profitability” as well, they told clients in a research note on Friday.
In October, the Korean car manufacturer reported a 3.8% year-on-year increase in its quarterly revenue.
Its management recorded operating profit margin of 10.9% at the time.
Kia stock currently pays a rather lucrative dividend yield of 5.91% at writing that makes up for another good reason to have it in your portfolio.
SK Hynix Inc (KRX: 000660)
SK Hynix will continue to benefit from AI tailwinds in 2025, as per the analysts at Macquarie.
Statista forecasts the artificial intelligence market to grow at a compound annualised rate of more than 28% to hit $1.0 trillion valuation over the next ten years.
The investment firm, therefore, expects a sharp recovery in shares of this AI memory chips maker next year. In fact, it expects SK Hynix stock to return as much as 50% in 2025.
Note that SK Hynix is the exclusive manufacturer of artificial intelligence memory chips for Nvidia that makes it rather uniquely positioned to benefit from the AI mania.
This Korean stock also pays a dividend yield of 0.72% at writing that makes it all the more attractive for those in search of passive income.
Hanwha Corp (KRX: 000880)
Macquarie expects Hanwha stock to return more than 50% in 2025.
The investment firm is positive on the aerospace and defense manufacturer due to its “strong sales exposure to Europe”.
Additionally, Hanwha stock could benefit as it “expands sales in the Middle East and Southeast Asia,” it argued in a report on Friday.
Hanwha shares are worth owning as they offer the “highest profitability among Korean defence peers,” the analysts added.
A number of European governments are expected to increase spending on defense amidst the Ukraine war and the ongoing conflict in the Middle East.
That could also help lift Hanwha stock significantly in the coming year, they concluded.
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