Shares of HD Hyundai Electric rose 5.12 percent to close at 657,000 Korean won, as KOSPI trading resumed on Friday after a weeklong break for the country's biggest Chuseok holiday.
Its market competitors also saw strong gains, with shares of Hyosung Heavy Industries jumping 5.52 percent and those of LS Electric climbing 4.14 percent. Iljin Electric, the last of the "big four" in the country's power equipment market, also saw the steepest gain at 6.11 percent.
Brokerage firm LS Securities forecast that HD Hyundai Electric is expected to post 1.03 trillion won (approximately US$848 million) in revenue and 230.6 billion won in operating profit (around $162 million) for the third quarter of this year.
Buoyed by the optimistic market outlook, the firm also raised its forecast for Hyundai Electric, expecting its shares could climb up to 20 percent from 640,000 won (US$450) to 800,000 won (US$563).
Friday's rally in stocks of these power equipment suppliers, buoyed by market optimism, began after Washington signaled its intent to replace its aging U.S. power grid.
According to the U.S. Department of Energy (DOE), about two-thirds of power transformers currently in use there require replacement. The average age of these transformers is 38 years, and nearly seven in ten are reportedly more than 25 years old.
The DOE aims to replace outdated transformers with units capable of handling voltages above 345 kV, known as extra-high-voltage (EHV) systems. Washington apparently sees the replacement as crucial for artificial intelligence-related facilities, which demand massive amounts of electricity.
The move is expected to benefit South Korean suppliers, recognized for their proven reliability and competitive prices.
According to a report by the Korea Trade-Investment Promotion Agency (KOTRA), South Korea was the top exporter to the U.S. market for small transformers with 650 kVA or below in 2024, accounting for 31.2 percent.
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