[Click eStock] "LG Electronics, Highlighted as Beneficiary of Data Center"

Hana Securities maintained a target price of 140,000 KRW and a 'Buy' investment rating on LG Electronics on the 29th, highlighting the benefits from data centers.

Researcher Kim Rok-ho said, "The stock price surged more than 13% the previous day," adding, "The reason for the price increase is the large-scale cooling system supply using chillers for major U.S. data centers."

Researcher Kim explained, "The chiller capacity supplied this time is up to 50,000 refrigeration tons (RT), which is more than three times the size of the Starfield supply in the past," and added, "Although the company has not made any separate remarks, the fact that this brings a new perspective on the potential benefits from data centers is judged to be positive for the stock price."

He also noted, "The HVAC (Heating, Ventilation, Air Conditioning) sector is a core part of LG Electronics' B2B business," emphasizing, "More than half of the air conditioner sales come from HVAC, which has no seasonality and relatively high profitability."

He continued, "It is an item that has consistently proven its competitiveness for over 10 years, driving sales growth within the home appliance division every year, and there are dozens of supply records for small and large data centers domestically," adding, "Based on these references, overseas sales have been underway, and it is estimated from yesterday's media reports that they have succeeded in securing orders from overseas data centers."

He further stated, "Regardless of the authenticity of this order, the history of supplying air conditioning systems related to data centers and the potential benefits have been highlighted," and added, "It is judged that the area of extreme undervaluation will be overcome."

This content was produced with the assistance of AI translation services.