Hana Securities said April 22 that LS ELECTRIC posted its best-ever quarterly results and raised its target price to 220,000 won from 124,000 won. It maintained its “buy” rating.
LS Electric reported first-quarter revenue of 1.3766 trillion won and operating profit of 126.6 billion won. Revenue and operating profit rose 33.4% and 45%, respectively, from a year earlier. Operating profit was roughly in line with the consensus estimate compiled just before the earnings release.
Yu Jaeseon, an analyst at Hana Securities, said demand tied to data centers and renewable energy in Korea and overseas is driving continued expansion led by the company’s power business. He added that recurring profit margins would likely have exceeded 10% excluding labor costs booked as one-time expenses.
Hana Securities said new orders in the first quarter totaled about 1.1 trillion won, up 27.4% from a year earlier, mostly for extra-high-voltage transformers and switchgear. It expects order growth to be led by extra-high-voltage products in the first half and by switchgear in the second half.
Yu said rising investment by big tech companies in data centers is fueling structural growth in the switchgear business. He said the company is expanding products that can support areas such as on-site power generation and energy storage systems, and expects meaningful revenue and orders within the year.
* This article has been translated by AI.
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