[Edaily Reporter kyoungeun kim ] HD HYUNDAI ELECTRIC is falling sharply in early trading on the 29th.

According to the Korea Exchange, as of 9:25 a.m. today, HD HYUNDAI ELECTRIC(267260)is trading at 621,000 won, down 84,000 won (11.91%) from the previous trading day.

Today’s stock price decline is attributed to concerns that the timing of reflecting earnings from new business ventures will be delayed, dampening investor sentiment despite solid second-quarter results this year. The company stated that, even with negotiations underway with big tech firms, revenue from the power distribution segment is not expected to take off in earnest until after 2029. Furthermore, the company explained that the effect of U.S. countervailing duty refunds amounted to only about 6 billion won in the second quarter, and that the actual impact on profits and losses related to existing tariffs will not become apparent until two years from now; this has also weighed on the stock as expectations for short-term earnings improvement have diminished.

Previously, HD HYUNDAI ELECTRIC announced in a filing the previous day that it recorded revenue of 1.1418 trillion won and operating profit of 287 billion won for the second quarter of this year. These figures represent increases of 26% and 37.3%, respectively, compared to the same period last year, and were in line with market forecasts (revenue of 1.1117 trillion won, operating profit of 285.2 billion won). All business segments—including power equipment, power distribution equipment, and rotating machinery—showed balanced performance improvements.

Lee Dong-heon, a research analyst at Shinhan Investment Securities, commented, “While second-quarter earnings met market expectations, strong order intake has continued, leading to an upward revision of the annual order target,” adding, “Investments in AI data centers and power transmission grids in North America, along with demand for eco-friendly power equipment in Europe, are growing simultaneously.” He further noted, “Amid the recent correction across growth sectors, the market is undergoing a process of separating the wheat from the chaff as valuations return to realistic levels, passing through an oversold phase.”

IBK Investment & Securities lowered its target price for HD HYUNDAI ELECTRIC from 1.5 million won to 1.2 million won today. This reflects the sector-wide valuation adjustment. However, it maintained its “Buy” rating.

Kim Tae-hyun, an analyst at IBK Investment & Securities, said, “Expectations for increased order intake remain valid, as investments in power grids, the expansion of renewable energy, and rising power demand from AI data centers are occurring simultaneously, particularly in North America and Europe.” He added, “The company is expanding its business portfolio to include power distribution equipment, rotating machinery, and DC power solutions, so it has ample room for growth in the medium to long term.” However, he added, “To reflect the sector-wide valuation adjustment, we have lowered the target P/E ratio from 50.5x to 38.9x.”