[Edaily Reporter Shin Ha-yeon ] G2Power Co.Ltd(388050)has risen by more than 50% over the past two months, buoyed by expectations of expanded investment in power infrastructure, including artificial intelligence (AI) data centers. Along with the rise in its stock price, the company’s earnings and order backlog have also shown signs of improvement, drawing attention to its business expansion potential—from its core power equipment business to solar power and energy storage systems (ESS).

According to MP Doctor on the 1st, G2Power Co.Ltd closed at 9,940 won on the previous trading day, the 30th of last month. Compared to the closing price of 6,600 won at the end of July, this represents a 50.61% increase in just two months. The stock price, which had fallen as low as 5,350 won at one point in July, rose sharply throughout August, climbed to the 12,000 won range during intraday trading in September, and has been trading around the 10,000 won mark this month.

The rise in the stock price is driven by expectations that the company will benefit from the expansion of AI data centers and increased investment in domestic power infrastructure. G2Power Co.Ltd is a specialized power equipment company focusing on power distribution panels, the design, procurement, and construction (EPC) of solar power generation systems, and energy storage systems (ESS). The company applies Condition Monitoring and Diagnostics (CMD) technology—which incorporates AI and Internet of Things (IoT) technologies—to its power distribution panels and holds the top market share in the government-procured power distribution panel sector.

In particular, with the rise of AI data centers, there are expectations that demand for power equipment will continue to expand not only for transformers and power lines but also into the power distribution sector. Since data centers require a stable 24-hour power supply, the importance of power distribution panels—which safely distribute power to end users—is also increasing.

Financial performance is also on the rise. In the first half of this year, consolidated revenue reached 29.6 billion won, an increase of approximately 22% compared to the same period last year, while operating profit stood at 2.7 billion won. In particular, revenue from the solar power generation systems business surged by approximately 200% year-over-year, driving overall growth.

The order backlog is also contributing to this growth. According to the semi-annual report, the total order backlog as of the end of June stood at 114.1 billion won. By business segment, this breaks down to 73.3 billion won for power distribution panels, 33.9 billion won for solar power, and 6.9 billion won for energy storage systems (ESS). Considering that last year’s annual revenue was 77.4 billion won, the company has secured a backlog exceeding one year’s worth of revenue.

Last year, G2Power Co.Ltd also saw simultaneous improvements in both revenue and profitability. Revenue increased from 49.4 billion won in 2023 to 55.4 billion won in 2024 and reached 77.4 billion won last year. During the same period, operating profit turned from a 900 million won loss in 2023 to a 3.7 billion won profit in 2024, before expanding to 8.8 billion won last year. The operating profit margin also rose from 6.6% in 2024 to 11.4% last year.

The company’s future growth drivers are expanding beyond its traditional power distribution panels to include AI data centers, energy storage systems (ESS), and nuclear power plants. G2Power Co.Ltd has recently set out to target the data center market by commercializing an AI-controlled energy storage system (ESS) using liquid immersion cooling. Liquid immersion cooling is a method of managing heat by directly submerging battery cells in an insulating coolant; it is a technology focused on reducing fire risks and thermal management burdens. The company announced last August that it had unveiled a related product and is preparing to secure large-scale projects.

The company also detailed this growth strategy in its corporate value enhancement plan announced the previous day. The company set medium- to long-term targets of 300 billion won in revenue and 33 billion won in operating profit by 2030. The plan is to expand its business structure—currently centered on government projects—into the commercial and overseas markets, aiming to balance the proportions of government, commercial, and overseas projects at around 50% each.

To this end, the company intends to cultivate transformers, uninterruptible power supplies (UPS), AI data centers, microgrids, and liquid-immersion-cooled energy storage systems (ESS) as new growth engines, and plans to establish a manufacturing base for UL-certified switchgear in North America. For the short-term period of 2026–2028, the company has set targets of an average annual revenue growth rate of at least 20% and a return on equity (ROE) of at least 15%, and it also plans to expand production capacity through its new factory in Yongin.

The securities industry has previously analyzed that increased investment in AI data centers and power infrastructure will create a favorable business environment for G2Power Co.Ltd.

Na Seung-doo, an analyst at SKSecurities, noted in a report last August, “This is a moment worth paying attention to, as the surge in power demand driven by AI data centers is extending beyond transformers and power lines to affect power distribution panels as well.” He added, “Considering factors such as the approaching replacement cycle for aging substation equipment, we believe that balanced opportunities are emerging across the entire spectrum of G2Power Co.Ltd’s business operations.”

The company’s established position in the government procurement market was also evaluated as a strength. Analyst Na explained, “Given the high barriers to entry in the government procurement market, we assess the company’s earnings stability to be high,” adding, “Since this is a market that requires passing various certifications—such as performance certification and new product certification—before entry, the technological and time gaps are larger than one might expect.”

He continued, “In the case of condition monitoring and diagnostic systems, since they are not merely about hardware sales but rather function as a structural mechanism that allows the company to secure diagnostic data as well as generate demand for maintenance and upgrades, they are well-positioned to command a premium.”