LS Eco Energy achieved its highest-ever performance in the first half of the year, driven by increased sales of high-voltage cables in Europe and bus ducts for data centers. The company reached approximately two-thirds of last year's total revenue in just the first half, raising the possibility of surpassing 1 trillion won in annual sales.
On August 5, LS Eco Energy reported a revenue of 635.8 billion won and an operating profit of 45.4 billion won for the first half of the year. Compared to the same period last year, revenue increased by 32.8%, and operating profit rose by 16.5%. Both figures represent the highest ever recorded for a half-year.
The first half's revenue accounts for about 66% of last year's total revenue of 960.1 billion won. If the company maintains its first-half revenue levels in the second half, annual sales could exceed 1.27 trillion won.
Sales of high-voltage power cables exported to Europe were a key driver of growth. This increase is attributed to rising demand for high-voltage cables in Europe due to the replacement of aging power grids and the expansion of renewable energy facilities.
Investment in AI data centers also contributed to the strong performance. Sales of bus ducts in the first half tripled compared to the same period last year. The construction of data centers by global tech giants, particularly in Malaysia and Indonesia, has led to increased demand for power distribution equipment capable of supplying large volumes of electricity.
Despite achieving a record operating profit margin of approximately 7.1% in the first half, this figure is lower than the 8.1% recorded in the same period last year, indicating limited improvement in profitability relative to revenue growth.
LS Eco Energy recently completed pre-qualification testing for its 400kV high-voltage cables, which is expected to open up new contract opportunities in the high-value high-voltage cable markets in Europe and North America.
The company is also nurturing its rare earth business as a new growth axis. In collaboration with Australian rare earth company Lynas, LS Eco Energy is advancing the mass production of rare earth metals and plans to expand its business structure from power cables to materials.
Lee Sang-ho, CEO of LS Eco Energy, stated, "Growth centered on high-value products such as high-voltage cables and bus ducts is gaining momentum. We will enhance our power business and develop rare earths as a new growth axis."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.