Corporate Logo(source: hd-hyundaielectric.com)
NH Investment & Securities raised its target price for HD Hyundai Electric (267260) by 29% from 440,000 won to 570,000 won on June 30. The revision reflects the company’s continued momentum in securing orders and expanding manufacturing capacity in the U.S. The stock closed at 487,500 won on June 27.
In a report released the same day, analyst Lee Min-jae noted, “HD Hyundai Electric’s transformers currently have an average lead time of four years, and the latest projects are yielding higher profit margins.” He added, “The benefits of plant expansions in Ulsan, Korea, and Alabama, U.S., are expected to start materializing this year.”
Lee also pointed out that “high-voltage transformers require skilled labor, and since the company operates both domestic and overseas plants, it is well-positioned in terms of workforce availability, giving it a competitive edge over rivals.”
Regarding the second-quarter outlook, Lee projected sales of 1 trillion won and operating profit of 221.8 billion won, slightly below market consensus. However, he emphasized that the projected operating margin of 22.5% in Q2 reflects significant contributions from high-margin projects. This would mark an improvement from the 21.5% operating margin recorded in the first quarter.
*[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 17.57 trillion won(as of June 27, 2025, closing price).
Corporate Logo(source: hd-hyundaielectric.com)
NH Investment & Securities raised its target price for HD Hyundai Electric (267260) by 29% from 440,000 won to 570,000 won on June 30. The revision reflects the company’s continued momentum in securing orders and expanding manufacturing capacity in the U.S. The stock closed at 487,500 won on June 27.
In a report released the same day, analyst Lee Min-jae noted, “HD Hyundai Electric’s transformers currently have an average lead time of four years, and the latest projects are yielding higher profit margins.” He added, “The benefits of plant expansions in Ulsan, Korea, and Alabama, U.S., are expected to start materializing this year.”
Lee also pointed out that “high-voltage transformers require skilled labor, and since the company operates both domestic and overseas plants, it is well-positioned in terms of workforce availability, giving it a competitive edge over rivals.”
Regarding the second-quarter outlook, Lee projected sales of 1 trillion won and operating profit of 221.8 billion won, slightly below market consensus. However, he emphasized that the projected operating margin of 22.5% in Q2 reflects significant contributions from high-margin projects. This would mark an improvement from the 21.5% operating margin recorded in the first quarter.
*[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 17.57 trillion won(as of June 27, 2025, closing price).