HD Hyundai Electric to boost North American data center sales with investment in Cheongju distribution campus

[Financial News] NH Investment & Securities said on the 28th that it expects sales to North American data centers to expand as a result of the second-phase investment in HD Hyundai Electric’s Cheongju distribution campus. It maintained its Buy rating but lowered its target price from 1.25 million won to 1.01 million won.
NH Investment & Securities analyst LEEMINJAE forecast, “Annual production capacity at the existing Cheongju distribution campus is about 250 billion won, and the investment will add capacity worth a further 250 billion won.”
HD Hyundai Electric decided to make an additional investment of 198 billion won in its Cheongju distribution campus to meet demand from North American data center customers. Following the first production facility, scheduled for July 2028, and the second, scheduled for June 2029, the company also plans to introduce an automated logistics system.
The analyst said, “Market conditions for North American data centers are positive, as they are for overseas competitors,” adding, “There have been no cases of construction delays on projects for utility customers. We also plan to invest in expanding production of transformers, switchgear, rotating machinery and other equipment.”
HD Hyundai Electric’s operating margin for the third and fourth quarters is 24%, below NH Investment & Securities’ estimate of 26%. This was due to revenue of 125 billion won from the Anjwa Solar City BESS project, which reduced the share of higher-margin North American sales (38%) by 10 percentage points from the previous quarter.

[email protected] Kang Gu-gwi Reporter