"LS ELECTRIC to Grow Earnings on Rising U.S. Orders," Says KB Securities

[Financial News] KB Securities said LS ELECTRIC will continue to improve its earnings on the back of rising orders from the United States. The brokerage also noted that recent orders from big tech companies for power equipment used in AI data centers are increasingly being placed as packages rather than as individual products, and LS ELECTRIC's portfolio, which covers everything from power distribution equipment to high-voltage switchgear, distribution transformers and extra-high-voltage transformers, is a strength.
Jung Hye-jung, a researcher at KB Securities, said in a report on the 1st, "LS ELECTRIC's biggest investment point is its order growth potential in the U.S. market."
According to KB Securities, LS ELECTRIC has been steadily posting strong order results in the U.S. market. In the first half, new orders for extra-high-voltage transformers rose 75.5% from a year earlier, while switchgear orders jumped 203.4% over the same period.
Jung said, "The company already has capacity for extra-high-voltage transformers in Busan and for power distribution equipment in Cheongju." She added, "It is considering investments of 150 billion won to 250 billion won from 2028, including further expansion of domestic extra-high-voltage transformer and switchgear capacity and the construction of a new power distribution equipment plant in the U.S., which should allow it to absorb rapidly growing demand for power equipment from big tech companies."
LS ELECTRIC also said its cumulative new orders in the first half reached 320 billion won, prompting it to raise its annual order guidance from 410 billion won to as much as 650 billion won. The expanded order momentum included a previously signed high-voltage power distribution system deal with a big tech client, whose size was increased from 106.4 billion won to 230.9 billion won, while the company also secured a follow-up 48.6 billion won order for a power distribution system from Bloom Energy. Jung added, "Follow-up orders from existing clients are continuing, and new orders from big tech customers are also expected in the second half."
[email protected] Lim Su-bin Reporter