Corporate Logo(source: ls-electric.com)
Korea Investment & Securities Co., Ltd. said on September 10 that LS ELECTRIC (010120) has entered the early stages of earnings improvement, driven by rising sales in the United States. The brokerage maintained its “Buy” rating and a target price of 350,000 won.
Analyst Jang Nam-hyun noted that LS ELECTRIC has been building references through project execution in the U.S. and plans to invest 350 billion won by 2030 to expand its production capacity there.
“Based on this, the company is expected to secure additional contracts in the U.S., while distribution volumes of mass-production products are projected to expand starting next year,” Jang said.
The analyst also highlighted that LS ELECTRIC continues to secure steady orders related to artificial intelligence (AI) infrastructure. Earlier this year, in February and March, the company signed supply contracts worth a total of 250 billion won with Company X. In September, it also clinched a power distribution solution contract for a U.S. hyperscale data center power infrastructure project.
Jang added, “The company is currently in discussions with major U.S. big tech firms for product supply, with orders expected to materialize next year. Leveraging references built through multiple projects, LS ELECTRIC is likely to strengthen its market share in the U.S. from next year. Furthermore, in Europe, power grid availability is becoming the key determinant for data center locations, and the references accumulated in the U.S. are expected to lay the foundation for its entry into the European market.”
Corporate Logo(source: ls-electric.com)
Korea Investment & Securities Co., Ltd. said on September 10 that LS ELECTRIC (010120) has entered the early stages of earnings improvement, driven by rising sales in the United States. The brokerage maintained its “Buy” rating and a target price of 350,000 won.
Analyst Jang Nam-hyun noted that LS ELECTRIC has been building references through project execution in the U.S. and plans to invest 350 billion won by 2030 to expand its production capacity there.
“Based on this, the company is expected to secure additional contracts in the U.S., while distribution volumes of mass-production products are projected to expand starting next year,” Jang said.
The analyst also highlighted that LS ELECTRIC continues to secure steady orders related to artificial intelligence (AI) infrastructure. Earlier this year, in February and March, the company signed supply contracts worth a total of 250 billion won with Company X. In September, it also clinched a power distribution solution contract for a U.S. hyperscale data center power infrastructure project.
Jang added, “The company is currently in discussions with major U.S. big tech firms for product supply, with orders expected to materialize next year. Leveraging references built through multiple projects, LS ELECTRIC is likely to strengthen its market share in the U.S. from next year. Furthermore, in Europe, power grid availability is becoming the key determinant for data center locations, and the references accumulated in the U.S. are expected to lay the foundation for its entry into the European market.”