[Click e-Stock] "LS ELECTRIC, New Orders Progressing Smoothly... Target Price Up"

KB Securities Raises LS ELECTRIC Target Price to 280,000 Won
"North American Big Tech Orders Continue in the Second Quarter"

On July 20, KB Securities announced that new orders, considered the main growth driver for LS ELECTRIC, are progressing smoothly. The company raised its target price from 2.6 million won to 2.8 million won, while maintaining its ‘buy’ investment rating.

Hyejeong Jeong, a researcher at KB Securities, stated about LS ELECTRIC, “The main reason for raising the target price was the upward revision of new order forecasts, as orders for North American big tech clients continued across various segments in the second quarter, from power distribution equipment to ultra-high voltage transformers.”

KB Securities estimated LS ELECTRIC’s second quarter revenue at 1.3 trillion won (+11.9% year-on-year), operating profit at 156.9 billion won (+44.5%), and net profit attributable to controlling shareholders at 141.2 billion won (+110.6%). The estimated operating profit is in line with market expectations.

Researcher Jeong added, “Revenue recognition for orders of distribution boards and equipment for domestic and overseas data centers, secured during the first half of this year, is ongoing. With the impact of new production capacity completed at the end of last year also reflected, the contribution of ultra-high voltage transformers to overall sales is expected to rise compared to the same period last year.”

The company’s new orders are also proceeding smoothly. According to the company’s announcements in the second quarter, LS ELECTRIC secured around 800 billion won in orders, including power distribution equipment for North American big tech clients and data centers, as well as distribution boards, medium- and low-voltage transformers, and ultra-high voltage transformers.

KB Securities expects the scale of new orders in the second quarter to exceed 2 trillion won, up from 1.3 trillion won in the previous quarter, considering there are many contracts of smaller size than those publicly disclosed. Researcher Jeong said, “Accordingly, annual new order guidance is also expected to be revised upward from the previous 4.1 trillion won. As contracts with big tech clients are often repetitive, we anticipate sustained mid- to long-term growth.”

This content was produced with the assistance of AI translation services.