[Edaily Reporter Kim Kyung-eun] On the 4th, Korea Investment & Securities raised its target price for #LS ELECTRIC to 285,000 won, a 29.5% increase from the previous level, citing the continued upward trend in orders for North American data centers. The firm maintained its “Buy” rating.

Jang Nam-hyun, an analyst at Korea Investment & Securities, stated in a report released that day, “Although the stock price has fallen 24.2% from the record high set on May 7, the momentum for simultaneous growth in orders and earnings is expanding,” adding, “Now is the right time to use the stock price correction as a buying opportunity.”

Analyst Jang explained, “Orders for product supply contracts for North American data centers are steadily increasing.” He added, “The company has already secured two projects to supply equipment to North American data centers in the second quarter alone, with a total contract value of 489.3 billion won.” He further predicted, “Consequently, we expect orders related to North American data centers to increase by more than 50% year-over-year in 2026, exceeding 1.5 trillion won.”

He emphasized, “Amid a worsening shortage of data center power equipment, we will continue to expand our order intake by leveraging delivery speeds that are more than 30% faster than those of our competitors,” adding, “It is common for data center customers to sign purchase contracts on the premise of securing long-term supply slots for three years or more. Therefore, we also expect repeat orders from customers we have already secured.”

LS Electric’s 2026 operating profit is estimated at 697.5 billion won, a 63.4% increase from the previous year. As profit margins continue to improve over the medium to long term due to an increase in high-margin projects, the average annual growth rate of the operating profit margin from 2025 to 2028 is projected to reach 47.9%.

Analyst Jang noted, “The full effect of margin improvement will begin to materialize starting in the second quarter,” explaining, “This is because, unlike in the first quarter, there will be no impact from one-time costs, and the effect of price increases for certain products will be reflected.” Second-quarter operating profit is estimated to reach 155.5 billion won, a 43.2% increase year-over-year.