"Target Price Doubles" LS ELECTRIC Expected to See Earnings Improve This Year... HD Korea Shipbuilding & Offshore Engineering Sets Naval Ship Market Target at Triple Last Year’s Level [Jutopia]

[The Financial News] On the morning of January 19, here is a summary of key brokerage reports.
LS ELECTRIC Co., Ltd. is projected to accelerate its earnings improvement this year as new orders for artificial intelligence (AI) data centers are expected to continue. Samyang Foods Co., Ltd.’s fourth-quarter results are forecast to fall somewhat short of expectations, prompting a cut in its target price from 1,750,000 won to 1,670,000 won. For HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HDKSOE), analysts highlighted the growth potential of its naval ship business.
◆LS ELECTRIC Co., Ltd. (010120)― iM Securities / Lee Sang-heon, research analyst at iM Securities
- Target price: 670,000 won (raised from 310,000 won)
- Investment opinion: Buy
iM Securities forecast that LS ELECTRIC will see its earnings improvement accelerate this year as demand for power infrastructure surges in line with increasing construction of AI data centers in North America, and raised its target price from 310,000 won to 670,000 won. Research analyst Lee Sang-heon explained that, for LS ELECTRIC, investments in power infrastructure have been activated due to increased construction of AI data centers in regions including North America, which has led to a rise in new orders and an expansion of the order backlog from 3.89 trillion won in the first quarter to 4.07 trillion won in the third quarter. He added that, as related new orders are expected to continue this year, the company’s earnings turnaround is likely to accelerate.
◆Samyang Foods Co., Ltd. (003230)― IBK Securities Co., Ltd. / Kim Tae-hyun
- Target price: 1,670,000 won (cut from 1,750,000 won)
- Investment opinion: Buy
IBK Securities Co., Ltd. lowered its target price for Samyang Foods from 1,750,000 won to 1,670,000 won, saying the company’s fourth-quarter results are likely to fall somewhat short of expectations. Analyst Kim Tae-hyun noted that although fourth-quarter ramen exports last year increased 14.8% year-on-year, the growth rate slowed compared with the first, second, and third quarters of last year. He analyzed that this was partly due to reduced production following the suspension of weekend overtime at existing plants, as well as an increase in volumes allocated to respond to year-end demand in the domestic market. He also projected that expanded year-end marketing activities and one-off costs would cause fourth-quarter results to come in somewhat below expectations. However, Kim pointed out that, with the global popularity of Hot Chicken Flavor Ramen remaining solid and the Samyang Foods Jiaxing Plant in China scheduled for completion in January next year and possibly starting trial operations earlier, the visibility of the China momentum is likely to improve further.
◆HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HDKSOE)― KIWOOM Securities Co., Ltd. / Han-gyeol Lee, research analyst at KIWOOM Securities
- Target price: 600,000 won
- Investment opinion: Buy
KIWOOM Securities Co., Ltd. set a target price of 600,000 won for HDKSOE, stressing that investors should focus on the growth potential of its naval ship business. Research analyst Han-gyeol Lee said that the Special Ship Business Unit of HD Hyundai Heavy Industries Co., Ltd. has set its 2026 order target at 3 billion dollars, nearly triple last year’s actual performance. He viewed it positively that global demand for naval vessels is rising sharply and that the company’s order pipeline is expanding not only in Southeast Asia and Latin America but also into regions such as Europe and the Middle East. Lee also highlighted the United States naval ship and Maintenance, Repair and Overhaul (MRO) market as a key point to watch, noting that HD Hyundai Shipbuilding Group is expected to expand its naval ship business by partnering with Huntington Ingalls Industries, a U.S. defense shipbuilder, as a joint construction partner for naval and auxiliary vessels.

sms@fnnews.com Seong Min-seo Reporter