Corporate Logo(source: ls-electric.com)
KB Securities announced on July 8 that it is maintaining a “Buy” rating on LS ELECTRIC (010120) and raising its target price by 28% to 320,000 won, citing strong growth momentum in the data center sector.
Analyst Jung Hye-jung explained, “The upward revision of the target price reflects an increase in our long-term return on equity (ROE) forecast, driven by accelerating orders for power equipment for AI data centers—particularly in the U.S.—and growing demand in the domestic market, where LS ELECTRIC already holds a significant market share. This is further supported by the Korean government’s initiative to expand AI infrastructure.”
She noted that LS ELECTRIC signed a contract at the end of last year with a U.S.-based company to supply power equipment for data centers and recently entered into a partnership with Vertiv, a firm specializing in power and liquid cooling systems. “Unlike mass-produced power equipment, data center-specific products are custom-developed to meet individual client requirements. LS ELECTRIC’s strength lies in its rapid development, certification, and delivery capabilities, which serve as a key competitive advantage,” she emphasized.
Jung also stated that the company is engaged in ongoing negotiations with several major U.S. tech firms, and domestically, it stands to benefit from the Korean government’s aggressive policies to expand the AI industry, particularly given its 60–70% market share in the local market.
For the second quarter, LS ELECTRIC is projected to post revenue of 1.3 trillion won, up 14.3% year-on-year, and operating profit of 116.7 billion won, up 6.4%. However, the expected operating profit is 5.1% below the market consensus.
*[KOSPI]LS ELECTRIC(010120) engages in power business, handling power transmission and distribution equipment and systems, as well as automation, metal, and other businesses. The market capitalization is 7.875 trillion won (as of July 7, 2025, closing price).
Corporate Logo(source: ls-electric.com)
KB Securities announced on July 8 that it is maintaining a “Buy” rating on LS ELECTRIC (010120) and raising its target price by 28% to 320,000 won, citing strong growth momentum in the data center sector.
Analyst Jung Hye-jung explained, “The upward revision of the target price reflects an increase in our long-term return on equity (ROE) forecast, driven by accelerating orders for power equipment for AI data centers—particularly in the U.S.—and growing demand in the domestic market, where LS ELECTRIC already holds a significant market share. This is further supported by the Korean government’s initiative to expand AI infrastructure.”
She noted that LS ELECTRIC signed a contract at the end of last year with a U.S.-based company to supply power equipment for data centers and recently entered into a partnership with Vertiv, a firm specializing in power and liquid cooling systems. “Unlike mass-produced power equipment, data center-specific products are custom-developed to meet individual client requirements. LS ELECTRIC’s strength lies in its rapid development, certification, and delivery capabilities, which serve as a key competitive advantage,” she emphasized.
Jung also stated that the company is engaged in ongoing negotiations with several major U.S. tech firms, and domestically, it stands to benefit from the Korean government’s aggressive policies to expand the AI industry, particularly given its 60–70% market share in the local market.
For the second quarter, LS ELECTRIC is projected to post revenue of 1.3 trillion won, up 14.3% year-on-year, and operating profit of 116.7 billion won, up 6.4%. However, the expected operating profit is 5.1% below the market consensus.
*[KOSPI]LS ELECTRIC(010120) engages in power business, handling power transmission and distribution equipment and systems, as well as automation, metal, and other businesses. The market capitalization is 7.875 trillion won (as of July 7, 2025, closing price).