[Edaily Reporter Kwon Oh Seok ] IBK Investment & Securities announced on the 21st that it is maintaining its “Buy” rating and target price of 76,000 won for LS Eco Energy(229640).

Kim Tae-hyun, an analyst at IBK Investment & Securities, stated, “In the short term, expanding power cable exports will drive earnings growth, while new businesses in ultra-capacitors (UC—high-speed charge/discharge energy storage devices) and rare earth metals are expected to serve as additional growth engines,” adding "We are currently reviewing a plan to produce UCs in collaboration with LS Materials Co.,Ltd. by utilizing idle land at LSCV (the production subsidiary in Ho Chi Minh City, Vietnam), and if the investment is finalized, we aim to begin operations in the second quarter of 2027," he explained.
He continued, “We estimate the annual business scale to be between 70 billion and 80 billion won in total value. For rare earth metals, we plan to begin mass production of approximately 240 metric tons of samarium in 2027 and launch the full production system (approximately 2,500 metric tons) in 2028; once fully operational, annual revenue is projected to reach approximately 300 billion won with an initial operating profit margin of 7–8 percent,” he elaborated.
Third-quarter consolidated revenue and operating profit came in at 351.5 billion won (+51.0% year-over-year) and 22.2 billion won (+50.2%), respectively, exceeding both the consensus estimates (303.9 billion won and 20.5 billion won) and our estimates (321.5 billion won and 19.3 billion won). Analyst Kim emphasized, “Strong sales of distribution cables for the domestic market in Vietnam (benefiting from expansion in construction and plant projects) and materials (increased volume of processed electrolytic copper and rising copper prices), along with growing demand for bus ducts for data centers in Southeast Asia, drove earnings growth.”
In the fourth quarter as well, high-value-added power grid projects in Vietnam and expanded sales of underground distribution cables to North America are expected to support earnings growth. In particular, the company’s ultra-high-voltage cables are drawing attention as it is strengthening export competitiveness by raising the maximum production voltage from the previous 220 kV to the 400 kV class.
He said, “We are pursuing an expansion of high-voltage product supply in follow-up bids in Denmark, and we understand that discussions are underway in Ireland with the goal of delivery in 2027. In North America as well, we have completed preliminary performance verification tests, and we expect to begin supplying ultra-high-voltage cables starting in the fourth quarter of this year and continuing into next year.”
He added, “We plan to expand our bus duct production capacity by approximately 2.3 times, from the current level of around 30 billion won to 80–100 billion won, and aim to begin mass production in the second half of 2027 by expanding our existing low-voltage-focused bus duct product line to include medium-voltage products for AI data centers.”