Corporate Logo(source: hyosungheavyindustries.com)
Korea Investment & Securities said on September 10 that Hyosung Heavy Industries (298040) is expanding its market share in Europe faster than any other domestic transformer company, maintaining a leading position in the region. The brokerage maintained its “Buy” rating and target price of 1.55 million won.
Jang Nam-hyun, an analyst at Korea Investment & Securities, noted, “Since entering the U.K. market in 2015, Hyosung Heavy Industries has held the top market share in the U.K. ultra-high-voltage transformer market since 2022. In 2025, the company also signed an 85 billion won supply contract for ultra-high-voltage transformers with Scottish Power.”
Regarding its European expansion, he added, “Hyosung has secured projects in multiple countries including France and Spain, while also expanding orders in Germany, home to global transformer companies such as Siemens Energy, thereby building a stronger track record. In 2025, it signed a long-term ultra-high-voltage transformer supply agreement with a German transmission operator, becoming the first Korean company to enter the German market.”
On its voltage source converter (VSC) high-voltage direct current (HVDC) technology, Jang explained, “Europe’s envisioned offshore energy hubs and cross-border electricity trading require VSC-HVDC systems, and most new projects are adopting this technology. Hyosung Heavy Industries succeeded in localizing VSC-HVDC technology in Korea in 2023, and is currently investing 330 billion won to build a dedicated HVDC transformer plant at its Changwon site.”
Looking ahead, Jang projected strong earnings growth: “Profitability is rapidly improving on the back of rising U.S. sales, with the U.S. share of the heavy industries segment reaching 23% in the second quarter of 2025. As the share of high-margin U.S. sales continues to grow, we expect operating profit to reach 593.6 billion won in 2025 and 800.1 billion won in 2026.”
*[KOSPI] Hyosung Heavy Industries(298040), a subsidiary of the Hyosung Group, produces and sells essential equipment for the power industry such as transformers, circuit breakers, as well as industrial production equipment including motors and gears. The market capitalization is 11.665 trillion won (as of September 9, 2025, closing price).
Corporate Logo(source: hyosungheavyindustries.com)
Korea Investment & Securities said on September 10 that Hyosung Heavy Industries (298040) is expanding its market share in Europe faster than any other domestic transformer company, maintaining a leading position in the region. The brokerage maintained its “Buy” rating and target price of 1.55 million won.
Jang Nam-hyun, an analyst at Korea Investment & Securities, noted, “Since entering the U.K. market in 2015, Hyosung Heavy Industries has held the top market share in the U.K. ultra-high-voltage transformer market since 2022. In 2025, the company also signed an 85 billion won supply contract for ultra-high-voltage transformers with Scottish Power.”
Regarding its European expansion, he added, “Hyosung has secured projects in multiple countries including France and Spain, while also expanding orders in Germany, home to global transformer companies such as Siemens Energy, thereby building a stronger track record. In 2025, it signed a long-term ultra-high-voltage transformer supply agreement with a German transmission operator, becoming the first Korean company to enter the German market.”
On its voltage source converter (VSC) high-voltage direct current (HVDC) technology, Jang explained, “Europe’s envisioned offshore energy hubs and cross-border electricity trading require VSC-HVDC systems, and most new projects are adopting this technology. Hyosung Heavy Industries succeeded in localizing VSC-HVDC technology in Korea in 2023, and is currently investing 330 billion won to build a dedicated HVDC transformer plant at its Changwon site.”
Looking ahead, Jang projected strong earnings growth: “Profitability is rapidly improving on the back of rising U.S. sales, with the U.S. share of the heavy industries segment reaching 23% in the second quarter of 2025. As the share of high-margin U.S. sales continues to grow, we expect operating profit to reach 593.6 billion won in 2025 and 800.1 billion won in 2026.”
*[KOSPI] Hyosung Heavy Industries(298040), a subsidiary of the Hyosung Group, produces and sells essential equipment for the power industry such as transformers, circuit breakers, as well as industrial production equipment including motors and gears. The market capitalization is 11.665 trillion won (as of September 9, 2025, closing price).