Corporate Logo(source: hd-hyundaielectric.com)
Korea Investment & Securities Co.,Ltd announced on July 10 that it has raised its target price for HD Hyundai Electric (267260) from 440,000 won to 550,000 won, citing continued, undeniable structural growth. The firm maintained its “Buy” rating.
Jang Nam-hyun, an analyst at Korea Investment & Securities, stated, “Performance improvement is expected to continue, driven by rising exports of ultra-high-voltage transformers to the United States. As of the first quarter, 65% of the company’s order backlog is tied to North American projects, indicating that revenue contributions from the U.S. market will continue to grow steadily.”
He added, “The projects currently being recognized as revenue are based on orders received in 2023. Since prices for ultra-high-voltage transformers in the U.S. have consistently increased since then, future revenue is expected to come with higher profit margins.”
Jang further noted, “As the shortage of ultra-high-voltage transformers in the U.S. persists, HD Hyundai Electric is actively expanding production capacity. The first phase of expansion was completed last year, and the resulting revenue contribution is expected to begin reflecting in this year’s performance.”
He explained, “Once the expansion is fully reflected in 2025, production capacity is expected to increase by more than 220 billion won in annual revenue terms. A second-phase expansion is scheduled for completion in 2027, which will further boost capacity by over 300 billion won in revenue potential.”
However, second-quarter earnings are expected to come in slightly below market expectations.
Jang projected consolidated revenue for the second quarter at 1.0161 trillion won and operating profit at 215.2 billion won—1.5% and 5.5% below consensus estimates, respectively. He attributed the shortfall to recent changes in accounting standards, which are likely to have impacted reported results.
*[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 16.293 trillion won (as of July 9, 2025, closing price).
Corporate Logo(source: hd-hyundaielectric.com)
Korea Investment & Securities Co.,Ltd announced on July 10 that it has raised its target price for HD Hyundai Electric (267260) from 440,000 won to 550,000 won, citing continued, undeniable structural growth. The firm maintained its “Buy” rating.
Jang Nam-hyun, an analyst at Korea Investment & Securities, stated, “Performance improvement is expected to continue, driven by rising exports of ultra-high-voltage transformers to the United States. As of the first quarter, 65% of the company’s order backlog is tied to North American projects, indicating that revenue contributions from the U.S. market will continue to grow steadily.”
He added, “The projects currently being recognized as revenue are based on orders received in 2023. Since prices for ultra-high-voltage transformers in the U.S. have consistently increased since then, future revenue is expected to come with higher profit margins.”
Jang further noted, “As the shortage of ultra-high-voltage transformers in the U.S. persists, HD Hyundai Electric is actively expanding production capacity. The first phase of expansion was completed last year, and the resulting revenue contribution is expected to begin reflecting in this year’s performance.”
He explained, “Once the expansion is fully reflected in 2025, production capacity is expected to increase by more than 220 billion won in annual revenue terms. A second-phase expansion is scheduled for completion in 2027, which will further boost capacity by over 300 billion won in revenue potential.”
However, second-quarter earnings are expected to come in slightly below market expectations.
Jang projected consolidated revenue for the second quarter at 1.0161 trillion won and operating profit at 215.2 billion won—1.5% and 5.5% below consensus estimates, respectively. He attributed the shortfall to recent changes in accounting standards, which are likely to have impacted reported results.
*[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 16.293 trillion won (as of July 9, 2025, closing price).