[Click eStock] "HD Hyundai Electric, Prolonged Power Equipment Cycle... Target Price Up"

Target Price Raised from 450,000 KRW to 570,000 KRW

On the 15th, SK Securities raised the target price for HD Hyundai Electric from 450,000 KRW to 570,000 KRW, anticipating a prolonged power equipment cycle. The investment rating was maintained at 'Buy.'

Nam Min-sik, a researcher at SK Securities, explained, "Reflecting the market's rising expectations due to the prolonged power equipment cycle, we changed the application timing of the book value per share (BPS) from 2025 to 2026."

HD Hyundai Electric's fourth-quarter performance last year is expected to meet market forecasts. Researcher Nam said, "Fourth-quarter sales increased by 23.5% year-on-year to 985 billion KRW, and operating profit rose by 76.8% to 220 billion KRW, aligning with the consensus operating profit boosted by exchange rate increases."

SK Securities forecasts HD Hyundai Electric's performance this year to be 4.128 trillion KRW in sales, up 20.8% year-on-year, and operating profit of 972 billion KRW, up 34.5%. Key variables determining this year's performance include the prolonged power equipment cycle, data centers, and expansions. Researcher Nam stated, "According to data from the Electric Reliability Council of Texas (ERCOT), which operates the Texas power grid, and PJM, the power system operator in the northeastern United States, future power demand is expected to grow at a compound annual growth rate (CAGR) of 6.1% and 2.7%, respectively, from 2025 to 2035. Correspondingly, investment in power utility facilities is increasing, driving up demand for power equipment." He added, "As long as the investment scale of utility companies in the upstream industry does not shrink, the cycle is expected to continue through 2025." He further noted, "Benefits from artificial intelligence will appear starting in 2026."

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