[Edaily Reporter Kwon Oh-seok] NH Investment & Securities announced on the 4th that it is maintaining its “Buy” rating and 600,000 won target price for #LS.

Lee Seung-young, an analyst at NH Investment & Securities, noted, “LS’s stock price has been sluggish due to the recent weakness in the share prices of domestic wire and power equipment companies,” but added, “We believe investors should focus on the improved earnings of its subsidiary, LS Cable, and the potential for a revaluation of the holding company’s value rather than short-term stock price volatility.”
He explained, “We expect the value of unlisted subsidiaries to be fully reflected in the holding company’s value thanks to LS’s efforts to enhance shareholder value, including the government’s push to prohibit dual listings in principle, the withdrawal of the Essex Solutions IPO, and the repurchase of pre-IPO stakes in LS EV Korea and LS Eco Advanced Materials.”
The analyst added, “We forecast medium- to long-term earnings growth for LS Cable, driven by expanded sales of highly profitable ultra-high-voltage cables and bus ducts, as well as the effects of selective order wins focused on high-value-added projects. Starting in the fourth quarter, the effects of the expansion of Donghae Plants 4 and 5 will be fully reflected, and we anticipate an upgrade in subsea cable performance,” he added, noting, “The U.S. subsea cable factory is scheduled for completion in the third quarter of 2027, with mass production planned for the first quarter of 2028.”
He further noted, “Recently, LS Cable’s subsidiary, ‘LS Cable & System U.S.A.,’ signed a long-term supply contract with a global tech company for bus ducts to be used in artificial intelligence (AI) data centers in the U.S.” He added, “In connection with this, LS Cable has signed a long-term contract with LS Cable & System U.S.A. to supply bus ducts worth approximately 2 trillion to 4 trillion won through December 2030.”