[Edaily Reporter Lee Hye-ra] On the 11th, IBK Investment & Securities projected that #Hyosung Heavy Industries would continue its robust growth in the second quarter, driven by demand for power equipment in North America and a recovery in profitability in the construction sector. The firm maintained its “Buy” rating and target price of 4.9 million won.

Kim Tae-hyun, an analyst at IBK Investment & Securities, stated, “On a consolidated basis, second-quarter revenue is expected to reach 1.9091 trillion won and operating profit 324.5 billion won, representing year-over-year increases of 25.2% and 97.6%, respectively,” adding, “We expect results to exceed market consensus.”
The Heavy Industries division is expected to drive earnings improvement as sales of high-margin products, such as circuit breakers for the U.S. market—which were not reflected in the first quarter—are recognized in the second quarter. Revenue for the Heavy Industries division is estimated to reach 1.3667 trillion won, and operating profit 302 billion won, representing increases of 28.8% and 79.3%, respectively.
Analyst Kim predicted, “The volume destined for the U.S. that was recorded as inventory in transit at the end of the first quarter is expected to be reflected in the second quarter as approximately 100 billion won in revenue and 40 billion won in operating profit.”
The construction division is also expected to see improved profitability. He predicted, “As the base effect from the approximately 24 billion won in bad debt provisions recorded last year’s second quarter for unsold units at a Busan officetel project fades, operating profit is expected to turn positive at 22.5 billion won.”
Researcher Kim identified “solid-state transformers” (SSTs) as Hyosung Heavy Industries’ mid-to-long-term growth driver, following ultra-high-voltage transformers. He explained, “Interest in solid-state transformers—next-generation transformers capable of controlling both power flow and quality—is growing in line with the expansion of AI data centers and DC power grids.”
He added, “Hyosung Heavy Industries completed the development of a 22.9kV-class solid-state transformer in 2022 and is currently conducting a demonstration project for power supply to data centers,” forecasting that “although still in the early stages, gradual results will become visible starting next year as the relevant market expands.”
Researcher Kim assessed, “The company will continue to benefit from growing demand for high-margin 765kV ultra-high-voltage transformers and increased investment in power grids,” adding, “The earnings momentum driven by strong order intake remains valid.”