Patience and Precision: Riding the Winners While Scouting the Next Turnaround

📋 Daily Overview

💼 Holdings	Songwon Industrial (004430.KS) · JS Link (127120.KQ)
🔍 Watchlist	Hotel Shilla (008770.KS) · KG Chemical (001390.KS)
📝 Today’s Mood	Watching trend continuation in current holdings while tracking early turnaround signals in the broader market
🇰🇷 Market	South Korea (KOSPI & KOSDAQ)

⚡ Flash Update: Portfolio Performance (2:30 PM KST)

Both positions are moving in line with the original entry thesis, based on improving supply-demand dynamics and strengthening short-term momentum.

Stock	Entry	Current	Return	Sentiment
Songwon Industrial (004430.KS)	₩9,190	₩9,620	+4.68%	🚀 Strong Bullish
JS Link (127120.KQ)	₩42,644	₩44,050	+3.30%	📈 Positive

---

🏭 1. Songwon Industrial (004430.KS)

Price Increases as a Margin-Defense Strategy

📋 Fundamental Narrative

Songwon Industrial, the world’s second-largest polymer stabilizer producer, reported an operating loss of about ₩3.1 billion in Q4 FY2025. However, market attention has shifted toward its margin-defense efforts. After a 12–20% price hike in March, the company announced further adjustments on April 9, citing geopolitical disruption in the Middle East. In the current oversupplied environment, this looks less like a full-cycle recovery and more like disciplined margin management.

📊 Technical & Supply Chain Insights

• 📈 Structural Recovery: Price remains above the 5-, 20-, 60-, and 120-day moving averages, supporting a constructive medium- to long-term trend view.
• ⚠️ Momentum: CCI (208.55) and Bollinger %B (1.07) suggest short-term overheating, but the expanding MACD still points to trend continuation. A brief consolidation around ₩9,600 would be normal before any fresh attempt at the ₩10,000 psychological level.
• 🌍 Foreigner-Led Rally: Foreign investors accumulated roughly 177,000 shares over the last 10 sessions, suggesting outside demand has been absorbing retail supply.

🗣️ Jeni’s Dad’s Strategy

“I’m following an adaptive trend-following approach. I’ll keep watching the ₩9,250 area (near the 5-day MA) as the first short-term support level. As long as foreign buying remains intact and the price floor holds, I’m comfortable staying with the position. Near ₩10,000, I’ll reassess momentum and order flow before deciding on the next move.”

---

🔗 2. JS Link (127120.KQ)

A Rare Earth Magnet Expansion Story

📋 The Narrative

JS Link is increasingly being viewed as a non-China rare earth supply chain name as global manufacturers seek alternative sourcing routes. The story moved closer to execution with its ₩50 billion investment in a Malaysian production subsidiary and expansion into permanent magnets. While earnings pressure remains, the market appears more focused on execution potential within the de-risking theme. The cleanest way to frame JS Link is as a company shifting toward rare earth magnet growth — not one that has already fully completed that transition.

📊 Microstructure & Market Sentiment

• 🏛️ Institutional Floor: Institutions net-bought roughly 309,000 shares over the last 10 sessions, supporting the ₩39,000–41,000 range. Foreign investors rejoined on April 9–10, improving the short-term demand picture.
• ✅ Cleaner Supply Structure: Credit leverage remains very low at ~0.02%. Softer short-selling pressure also suggests less immediate downside stress in the current move.
• 📉 Technicals: Trading above all major moving averages, keeping the broader trend constructive.

🗣️ Jeni’s Dad’s Strategy

“Managing this with adaptive risk control. Watching the slope of the 5-day MA around ₩41,300 and the 20-day line near ₩39,300. If institutional support remains steady, I’m willing to stay with the trade. The ₩44,800–45,500 zone looks like the first area where resistance could become more visible.”

---

🏨 3. Watchlist: Hotel Shilla (008770.KS)

Watching for a Turnaround

📋 The Narrative

Hotel Shilla is drawing attention as a possible turnaround candidate. The market is watching for improved profitability from Q2 onward, following the closure of loss-making airport duty-free operations and the gradual recovery of inbound tourism. Investor confidence also improved after CEO Lee Boo-jin announced plans to purchase ~₩20 billion worth of company shares — a meaningful signal that management sees value at current levels.

📊 Supply & Demand Reversal

• 🔄 Shift in Flow: Foreign investors and institutions recently took the lead from individuals, with ~494,000 shares and ~435,000 shares of net buying respectively over the last five sessions.
• ⏳ Strategy: The stock looks somewhat heated in the short term. Waiting for a breather — watching the ₩48,000 area for support confirmation before considering an entry.

---

⚗️ 4. Watchlist: KG Chemical (001390.KS)

Commodity Theme with Value Support

📋 The Narrative

KG Chemical is attracting attention as a fertilizer-related name amid tighter global urea and ammonia markets. That said, the Middle East supply shock does not create a purely one-way bullish setup — higher fertilizer prices can help sentiment but also bring procurement pressure and supply uncertainty. Better described as a name with both thematic support and external risk. The company’s shareholder return policy (maintaining at least a 35% return ratio) adds a valuation support angle to the story.

📊 Flow Check

• 🌍 Foreign Buying: Foreign investors net-bought ~851,000 shares recently.
• ⚖️ Mixed Structure: Stock lending has increased by ~315,000 shares, meaning stronger spot demand is being partially offset by a build-up in potential future selling pressure.
• ⏳ Strategy: Watching the ₩5,500 area as near-term support. Prefer to wait for a pullback and confirm whether foreign-led demand remains durable despite higher stock-lending balances.

---

💭 Closing Thoughts

Trading is not just about pressing the buy button every day. It is about staying disciplined enough to let the market confirm your thesis. Today felt less like a day for aggressive action and more like a day for observation — tracking margin-defense behavior in Songwon, execution risk and opportunity in JS Link, turnaround potential in Hotel Shilla, and a mixed commodity-value setup in KG Chemical.