Corporate Logo(source: hd-hyundaielectric.com)
Yuanta Securities announced on July 4 that it maintains a “Buy” rating on HD Hyundai Electric (267260), with a revised target price of 600,000 won.
Analyst Son Hyun-jung of Yuanta Securities stated, “High-value orders placed in 2023 have begun to be reflected in earnings this year. Following the first phase of capacity expansion completed in 2024—with 220 billion won invested across Ulsan and Alabama—the second phase is now underway, with an additional 200 billion won allocated to Ulsan and 100 billion won to Alabama, scheduled for completion by 2027.”
Son further explained, “As a result, production capacity for ultra-high-voltage transformers is expected to expand by more than 30% compared to 2024. As of the first quarter, orders bound for North America accounted for 56% of new bookings and 64% of the backlog. The total order backlog stands at approximately 6.2 billion dollars (around 8 trillion won), consisting mainly of high-margin ultra-high-voltage equipment.”
Second-quarter results are estimated at 1.009 trillion won in revenue, up 10.0% year-on-year, and 224.8 billion won in operating profit, up 7.0%. Son noted, “Despite record earnings in the first quarter, solid profitability is expected to continue, supported by the full-scale delivery of high-value orders and improved product mix.”
She added, “Although a 10% U.S. tariff currently applies, major high-value projects include escalation clauses that allow for cost pass-through. Even after the expiration of the grace period, cost-sharing arrangements with clients may mitigate potential impacts, limiting any adverse effect on future earnings.”
Son concluded, “While second-quarter results may appear relatively modest, earnings in the third quarter are likely to show a significant increase due to timing differences in revenue recognition.”
*[KOSPI] HD Hyundai Electric(267260) manufactures and supplies various electrical and electronic devices and energy solutions required for all stages of the power supply process, from generation → transmission → distribution → consumption(load). The market capitalization is 16.38 trillion won (as of July 3, 2025, closing price).
Corporate Logo(source: hd-hyundaielectric.com)
Yuanta Securities announced on July 4 that it maintains a “Buy” rating on HD Hyundai Electric (267260), with a revised target price of 600,000 won.
Analyst Son Hyun-jung of Yuanta Securities stated, “High-value orders placed in 2023 have begun to be reflected in earnings this year. Following the first phase of capacity expansion completed in 2024—with 220 billion won invested across Ulsan and Alabama—the second phase is now underway, with an additional 200 billion won allocated to Ulsan and 100 billion won to Alabama, scheduled for completion by 2027.”
Son further explained, “As a result, production capacity for ultra-high-voltage transformers is expected to expand by more than 30% compared to 2024. As of the first quarter, orders bound for North America accounted for 56% of new bookings and 64% of the backlog. The total order backlog stands at approximately 6.2 billion dollars (around 8 trillion won), consisting mainly of high-margin ultra-high-voltage equipment.”
Second-quarter results are estimated at 1.009 trillion won in revenue, up 10.0% year-on-year, and 224.8 billion won in operating profit, up 7.0%. Son noted, “Despite record earnings in the first quarter, solid profitability is expected to continue, supported by the full-scale delivery of high-value orders and improved product mix.”
She added, “Although a 10% U.S. tariff currently applies, major high-value projects include escalation clauses that allow for cost pass-through. Even after the expiration of the grace period, cost-sharing arrangements with clients may mitigate potential impacts, limiting any adverse effect on future earnings.”
Son concluded, “While second-quarter results may appear relatively modest, earnings in the third quarter are likely to show a significant increase due to timing differences in revenue recognition.”
*[KOSPI] HD Hyundai Electric(267260) manufactures and supplies various electrical and electronic devices and energy solutions required for all stages of the power supply process, from generation → transmission → distribution → consumption(load). The market capitalization is 16.38 trillion won (as of July 3, 2025, closing price).