Journalist

Joseph Kwak
  • ​​​​​​​HOT STOCK: Hyosung Heavy takes breather after 50% near-nonstop rally
    ​​​​​​​HOT STOCK: Hyosung Heavy takes breather after 50% near-nonstop rally SEOUL, May 07 (AJP) - Hyosung Heavy Industries, a Seoul-based transformer and switchgear maker, has emerged as one of the KOSPI’s standout AI infrastructure plays outside chip behemoths, with its shares soaring more than eightfold from a year earlier. The stock rose as high as 4,742,000 won ($3,267) on Thursday before easing to 4,558,000 won as of 2 p.m. Hyosung Heavy has gained nearly 50 percent in just two weeks from 2,990,000 won on April 16, and more than eightfold from 516,000 won a year ago. Its market capitalization has swelled to 42.49 trillion won, ranking No. 11 on the KOSPI. The rally has been driven largely by expectations for surging power demand from artificial intelligence. Training and operating large language models require data centers that consume far more electricity than conventional facilities, adding pressure to aging grids and prompting utilities to place massive orders for high-voltage transformers, circuit breakers and substation equipment — Hyosung Heavy’s core products. The shortage is most acute in North America, where waiting times for large transformers now range from 2.3 to 2.5 years, according to Wood Mackenzie’s second-quarter 2025 survey. Hyosung Heavy has become one of the clearest beneficiaries of the bottleneck. The company posted record annual results last year, with sales of 5.97 trillion won and operating profit of 747 billion won. North American revenue alone surpassed 1 trillion won, while its order backlog jumped 34 percent on-year to 11.9 trillion won, giving analysts confidence that earnings momentum can extend into next year. But the speed of the rally has raised valuation questions. The stock trades at roughly 80 times trailing earnings and 53 times forward earnings, well above the average for most global power-equipment peers. Brokerages remain broadly constructive on the long-term outlook. Naver Finance’s consensus 12-month target price stands at 4,620,000 won with a “buy” rating, implying analysts still see room for further upside. Trading volume reached more than 39,000 shares by mid-morning, heavy for a stock at this price level, with turnover topping 176.5 billion won. For now, the bull case remains intact — as long as hyperscalers keep pouring capital into AI data centers and U.S. utilities continue ordering transformers. 2026-05-07 14:58:09