[Click eStock] "LS ELECTRIC, Full-Scale Production of Ultra-High Voltage Transformers... Steep Growth Expected"

Hana Securities analyzed on the 9th that LS ELECTRIC is expected to experience rapid growth following the completion of the ultra-high voltage transformer expansion and the commencement of full-scale production. The investment opinion 'Buy' and the target price of 240,000 KRW were maintained.

Researcher Yoo Jae-sun of Hana Securities stated, "Growth is expected to focus on power equipment and power infrastructure, and the weak KRW-USD exchange rate is likely to have a favorable effect. The delayed recovery concerns for distribution panels are being offset by distribution equipment and power transformers," adding, "There is limited possibility of one-time labor cost issues in operating profit for Q4, and although the trend is high in the first half and low in the second half, recovery starting from Q3 as the bottom is positive."

Researcher Yoo also anticipated that not only ultra-high voltage transformers but also domestic ultra-high voltage direct current transmission (HVDC) will contribute to sales growth. He explained, "As the overall business portfolio diversifies, a long-term upward trend in performance is expected. Since ultra-high voltage transformers are still in short supply in major regions such as North America, Europe, and the Middle East, additional orders will be placed to enable timely production and delivery in line with the completion of the expansion," and added, "Furthermore, a secondary contract worth 561 billion KRW related to the East Coast-Dong Seoul HVDC conversion facility was announced last month. Following the primary contract of 212.6 billion KRW, which is scheduled to end in June 2027, the revenue will be sequentially reflected until 2028."

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