[Edaily Reporter Kwon Oh Seok ] SKSecurities announced on the 24th that it is maintaining its “Buy” rating on LS ELECTRIC(010120)(LS Electric) and raising its target price from 240,000 won to 310,000 won.

Na Min-sik, an analyst at SKSecurities, stated, “The company has entered a phase of accelerating operating leverage, and with the share of data center revenue increasing, we expect multiples to expand as well,” adding, “We believe it is the most attractive among the three major power equipment manufacturers (HD HYUNDAI ELECTRIC, HYOSUNG HEAVY INDUSTRIES, and LS ELECTRIC).”
The firm raised its 2026 revenue forecast to 6.6 trillion won (up 33.2% year-over-year) and its operating profit forecast to 732 billion won (up 71.8%). Analyst Na explained, “The upward revision is driven by rising demand for power distribution equipment for AI data centers, the expansion of the customer base to include major local U.S. companies, and the full-scale launch of projects by major Korean conglomerates entering the U.S. market.”
He added, “In particular, CAPEX (capital expenditure) announcements by memory companies have begun to translate directly into orders for the company. “For power distribution panels, the lead time for Big Tech clients is within 10 months, so revenue recognition is faster than for transmission transformers, which typically have lead times of over two years,” he emphasized. “Unlike competitors focused on ultra-high-voltage transformer backlogs, the company’s structure allows first-half orders to directly translate into higher 2026 revenue, which is why we view its 2026 earnings visibility as the highest among the three companies.”
Previously, the company posted its best-ever quarterly results in the second quarter, with revenue of 1.577 trillion won (+32%) and operating profit of 178.5 billion won (+64%). Analyst Na stated, “Profitability is improving structurally. The expansion of the share of high-margin data center projects and improvements in productivity and efficiency driven by rising capacity utilization rates have worked in tandem,” adding, “The share of exports within power business revenue has risen to 53%, continuing an upward trend.”
He added, “Although cost pressures persisted through May due to the sharp rise in silver and electrolytic copper prices, we believe that profitability will recover to normal levels (18–20%) in the second half of the year, reflecting the price increases implemented in June.”