North America Accounts for Nearly 80% of Iljin Electric's Heavy Electrical Equipment Orders

[Financial News] NH Investment & Securities said on the 6th that North America accounted for nearly 80% of Iljin Electric's $1.3 billion heavy electrical equipment order backlog as of the first half of this year. The brokerage maintained its "Buy" rating and target price of 108,000 won.
Lee Min-jae, an analyst at NH Investment & Securities, said, "As sales of ultra-high-voltage transformers for North America increase, additional profitability improvements to peer levels are expected. If North American orders in the backlog are converted into sales, profitability should improve further. We estimate that the operating profit margins of peers' ultra-high-voltage transformers for North America exceed 30%."
Like its domestic competitors, Iljin Electric has a track record of supplying equipment to Korea Electric Power Corporation (KEPCO). The heavy electrical equipment segment's lead time is more than 2.5 years, which is shorter than those of its competitors. New orders from North America are expected to expand further, supported by the company's delivery-time competitiveness.
Lee said, "If investment in South Korea's transmission network gets fully underway, additional growth in sales could be possible, led by cables as well as ultra-high-voltage transformers."

[email protected] Kang Gu-gwi Reporter