[Edaily Reporter kyoungeun kim ] Although the target price for HYOSUNG HEAVY INDUSTRIES(298040)has been lowered, its earnings and order intake forecasts have actually been revised upward. On the 4th, DaishinSecurities maintained its “Buy (BUY)” investment rating on HYOSUNG HEAVY INDUSTRIES but lowered the target price from 4.8 million won to 4.2 million won.
Heo Min-ho, an analyst at DaishinSecurities, stated, “Although we have raised our earnings and order intake forecasts for this year and the medium to long term, we are lowering the target price to 4.2 million won to reflect interest rate hikes and the expectation that the target price will be realized within six months.”
This year’s projected revenue and operating profit were raised by more than 10% from previous estimates to 7.333 trillion won and 1.182 trillion won, respectively, and the order intake forecast for the heavy industry division was also raised to 14.082 trillion won.
The firm also expects the favorable business conditions in the U.S. power equipment sector to strengthen further. Previously, in November 2025, HYOSUNG HEAVY INDUSTRIES signed a long-term strategic agreement with U.S. power companies American Electric Power (AEP) and Quanta Services to build power infrastructure. Analyst Heo noted, “Business cooperation could expand in the future to include gas-insulated switchgear (GIS), STATCOMs, and transformers.”
The spread of dedicated rate plans for large loads in the U.S. is also a favorable factor. Analyst Heo noted, “As of July 2026, dedicated rate plans for large loads have been approved in 24 U.S. states, with six states currently reviewing them,” adding “Utilities can bring forward the timing of contracts for high- and extra-high-voltage transformers and circuit breakers by reducing the burden of capital investment costs, shortening review periods, and accelerating the shift from allocated demand slots to firm demand. Additionally, well-capitalized artificial intelligence (AI) data centers are more likely to pay higher prices.”
In the second quarter, the U.S. accounted for 38% of the heavy industry sector’s revenue (1.7 trillion won), 63% of orders received (3.3 trillion won), and 57% of the order backlog (17.5 trillion won). Analyst Heo stated, “Exports of ultra-high-voltage transformers from the Changwon plant in South Korea to the U.S., which had been delayed due to anti-dumping issues, are also expected to ramp up in earnest starting in the second half of the year.”
Accordingly, DaishinSecurities raised its 2026 order guidance for the heavy industry segment from the previous 8.45 trillion won to 12 trillion won (a 58% increase year-over-year), revised its revenue growth forecast from 15% to 25%, and adjusted its operating profit margin forecast from the mid-to-high 10% range to the high 10% range. Analyst Heo said, “The supply volume for Quanta, scheduled to begin operations in the fourth quarter, has not been reflected in this forecast, so there is potential for further upward revisions.”