[Click eStock] "LG CNS Secures GPU Infrastructure... AIDC Business in Full Swing"

Announcement of GPU and Infrastructure Equipment Acquisition
Expanding Beyond Traditional Data Center DBO
Extending Territory into the GPUaaS Business

LG CNS is undergoing a transformation to become a GPUaaS (GPU as a Service) provider, moving beyond the traditional data center business by leveraging large-scale investments in AI (Artificial Intelligence) infrastructure.

On the 15th, Dongwoo Kim, a researcher at Kyobo Securities, analyzed, "LG CNS's public disclosure regarding tangible asset acquisition is a signal for the establishment of an AI factory and its entry into the GPUaaS business." He also maintained a "Buy" investment opinion and a target price of 89,000 won.

"Potential for Large-Scale Orders"

LG CNS recently disclosed its decision to acquire tangible assets worth 381.4 billion won. The acquisitions include GPUs (graphics processing units) and infrastructure equipment. The counterparty in the deal is Hewlett-Packard Korea Ltd., and the scheduled acquisition date is June 30 of next year.

Through this investment, LG CNS has expanded its business scope from the conventional data center DBO (Design, Build, and Operate) business to a GPUaaS business leveraging its own computing resources.

Researcher Kim explained, "LG CNS will use the XPUworks platform to drive GPUaaS and token usage fee services targeting both LG affiliates and external clients. By securing LG Group affiliates as anchor clients, there is little uncertainty regarding demand." He further emphasized, "If positive computing efficiency and performance are proven, this could lead to large-scale orders in the future."

Stable Earnings Trend to Continue... AIDC Operator Reevaluation Expected

Stable growth in performance is also expected to continue. Kyobo Securities estimates LG CNS’s revenue this year will be 6.53 trillion won (up 6.5% year-on-year), with operating profit at 594 billion won (up 7.6%). For next year, estimated revenue is 7.145 trillion won (up 9.4% from this year), and operating profit is expected to reach 663 billion won (up 11.6%).

Researcher Kim added, "This disclosure is the first equipment investment of the joint AI factory business executed following the meeting between LG Group and NVIDIA in June. As an operator of the AIDC (AI Data Center) business, which covers design, construction, operation, and even GPUaaS sales, LG CNS is expected to see a revaluation of its share price."

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