HD Hyundai Electric Co., Ltd.: Distribution Equipment Revenue Share to Rise from 21% to 29% ... “Will Raise Its Global Competitiveness to Tier 1 Level”

[Financial News] DS Investment & Securities forecast on the 10th that, based on earnings estimates, distribution equipment would account for 21% of HD Hyundai Electric Co., Ltd.’s revenue in 2026 and 29% in 2028, an increase of 8 percentage points. It assigned a “Buy” rating and set a target price of 472,000 won.
Heo Jun-seo, a researcher at DS Investment & Securities, said, “The distribution equipment business can generate vendor-centered recurring revenue, which may moderate the pace of margin growth during upcycles but strengthens the company’s ability to withstand downcycles. This strategy to expand the company’s push into distribution equipment will raise its global market competitiveness to the level of Tier 1 companies.”
HD Hyundai Electric Co., Ltd. is pursuing product-mix diversification by strengthening its distribution equipment business. Its strategy is to secure hyperscalers as customers for its distribution equipment, leveraging the supply bargaining power created by the shortage of ultra-high-voltage transformers. It has already disclosed a long-term supply agreement worth 1.1 trillion won and is also working on contracts with additional big-tech customers.



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