Corporate Logo(source: ls-electric.com)
On April 22, Hana Securities maintained a "Buy" rating and a target price of 260,000 KRW on LS ELECTRIC (010120), citing that the company’s growth trajectory is expected to accelerate starting in the second quarter as North American data center orders begin to contribute to earnings.
LS ELECTRIC’s earnings for the first quarter of 2025 met market expectations. The company reported sales of 1.0321 trillion KRW and operating profit of 87.3 billion KRW, marking a decline of 0.6% and 6.9%, respectively, from the same period in 2024.
While the power equipment division experienced temporary softness, the recovery is expected to begin in the second quarter. The company’s power infrastructure segment has seen a steady increase in its order backlog, and high-margin contracts are now being reflected in earnings, supporting a continued improvement in profit margins.
Concerns over a decline in switchgear sales are expected to ease as the backlog continues to grow. Hana noted that visibility is high for additional data center orders within the year, which are expected to contribute to overall profits with double-digit margins. Sales of ultra-high voltage products are also on the rise, and demand remains strong, especially in North America, where the order backlog is expanding.
Hana further reported that orders related to ultra-high voltage transformer production—covering the period through 2029—have already been secured. With the completion of its plant expansion in Busan scheduled for October, a sharp increase in sales is anticipated from that point forward.
Yoo Jae-sun, an analyst at Hana Securities, commented, “LS ELECTRIC is planning to expand its production capacity not only domestically but also in the U.S., particularly for distribution equipment and switchgear. As data center orders increase, the company is well-positioned to improve earnings.”
*[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 5.29 trillion won(as of April 21, 2025, closing price).
Corporate Logo(source: ls-electric.com)
On April 22, Hana Securities maintained a "Buy" rating and a target price of 260,000 KRW on LS ELECTRIC (010120), citing that the company’s growth trajectory is expected to accelerate starting in the second quarter as North American data center orders begin to contribute to earnings.
LS ELECTRIC’s earnings for the first quarter of 2025 met market expectations. The company reported sales of 1.0321 trillion KRW and operating profit of 87.3 billion KRW, marking a decline of 0.6% and 6.9%, respectively, from the same period in 2024.
While the power equipment division experienced temporary softness, the recovery is expected to begin in the second quarter. The company’s power infrastructure segment has seen a steady increase in its order backlog, and high-margin contracts are now being reflected in earnings, supporting a continued improvement in profit margins.
Concerns over a decline in switchgear sales are expected to ease as the backlog continues to grow. Hana noted that visibility is high for additional data center orders within the year, which are expected to contribute to overall profits with double-digit margins. Sales of ultra-high voltage products are also on the rise, and demand remains strong, especially in North America, where the order backlog is expanding.
Hana further reported that orders related to ultra-high voltage transformer production—covering the period through 2029—have already been secured. With the completion of its plant expansion in Busan scheduled for October, a sharp increase in sales is anticipated from that point forward.
Yoo Jae-sun, an analyst at Hana Securities, commented, “LS ELECTRIC is planning to expand its production capacity not only domestically but also in the U.S., particularly for distribution equipment and switchgear. As data center orders increase, the company is well-positioned to improve earnings.”
*[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 5.29 trillion won(as of April 21, 2025, closing price).