Sanil Electric shares surged more than 20% after the company disclosed a large transformer supply contract with U.S. energy company Bloom Energy for data centers.
According to the Korea Exchange, Sanil Electric was trading at 275,000 won as of 2 p.m. on Wednesday, up 54,000 won, or 24.43%, from the previous session. The stock rose as high as 281,500 won intraday, marking a record high.
The rally followed a filing that Sanil Electric signed a 50.3 billion won contract at 12:50 p.m. to supply transformers for U.S. data centers. Buying accelerated immediately after the disclosure.
The contract equals 10.02% of the company’s 2025 revenue of 501.9 billion won. The contract period runs from April 24 to March 29, 2027. The contract amount was listed as $33.875 million, converted using the exchange rate on the contract date of 1,484.20 won per dollar.
Sanil Electric, founded in 1994, is a transformer specialist. Transformers and reactors accounted for 97.4% of its revenue last year.
Lee Min-jae, an analyst at NH Investment & Securities, said demand for transformers is expected to rise as demand for renewable energy expands following the U.S.-Iran war. He said Sanil Electric has a product lineup capable of supplying transformers suited to all voltage levels in power grids built around renewable energy, and has secured a stable customer base and profitability, making profit growth possible as sales expand.
* This article has been translated by AI.
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