[Edaily Reporter PARK MIN ] On the 23rd, DaishinSecurities projected that #LSELECTRIC (LS Electric) would see further strengthening in its favorable business conditions and earnings growth momentum driven by the expansion of artificial intelligence (AI) infrastructure. However, reflecting a more realistic 6-month target price, the firm lowered its target price from 300,000 won to 250,000 won while maintaining its “Buy” investment rating.

Heo Min-ho, an analyst at DaishinSecurities, stated in a report released that day, “Lowering the target price to 250,000 won merely reflects a more realistic 6-month target; the favorable market conditions and earnings growth momentum will continue to strengthen, justifying the high valuation.”

The power distribution system packages that LS Electric primarily secures in orders consist of 70–80% power distribution panels and 20–30% power distribution transformers and equipment. With a lead time of less than 12 months, the company is assessed to hold a competitive advantage over the typical specifications for hyperscale data centers in the U.S. (2–3 years).

Researcher Heo explained, “Based on competitiveness in quality and delivery times, aggressive capacity expansion, and partner management capabilities, the company is expected to continue expanding its customer base to include major AI data centers and high-tech industries, as well as broadening its product portfolio, leading to a rapid increase in market share.” He added, “There is also potential to revise earnings forecasts upward depending on the pace of new orders from clients and the scale of order values in the future.”

In particular, sales growth is expected to accelerate for the company’s 1,500 V DC distribution panels for Bloom Energy fuel cells—which are gaining prominence as on-site power sources—as well as battery control panels (BCPs) and power conversion systems (PCS) for energy storage systems (ESS). Considering that the company is currently engaged in joint development with a global leader in the 800V DC product line, analysts forecast that it will secure a competitive edge as a market leader in the LVDC (low-voltage direct current) market.

Researcher Heo assessed, “While the company is a fast follower in the global AC power distribution market, we believe it is securing competitiveness as a leader in the LVDC (low-voltage DC) market, which is expected to see high growth.”

Regarding concerns raised in some market circles about delays in U.S. data center construction, he drew a clear line, stating that the impact on the company’s core business would be limited. This is because, in the construction phase of AI data centers, on-site generators are installed in the middle of the process, while those for non-IT mechanical rooms (Gray Space) are installed in the middle to late stages.

Researcher Heo noted, “We believe that the impact of potential construction halts for AI data centers in the U.S. on power distribution infrastructure products to be supplied through the mid-to-late 2028 period will be limited.”

LS Electric’s production capacity (CAPA) is also expected to expand significantly. LS Electric plans to triple its production scale for power distribution panels by 2030 through domestic and international expansions, and it also plans to expand the CAPA of its transformer subsidiary, LS Power Solutions, from 200 billion won this year to 650 billion won by 2028 (including 300 billion won for ultra-high-voltage transformers).

Analyst Heo stated, “Structural adjustments to non-core businesses—such as the sale of the railway signaling business, which had been posting an annual loss of 5 billion won, and the divestiture of the Chinese subsidiary—are accelerating the company’s transformation toward a high-margin power infrastructure-focused business model.” He added, “The company-wide operating profit margin is expected to rise from the 11% range in 2026 to 15% in 2028, while the operating profit margin for the power business will jump to over 20%.”

DaishinSecurities estimated LS Electric’s 2026 annual consolidated revenue at 6.829 trillion won and operating profit at 782 billion won. The firm further projected that the company would maintain its high growth trajectory, recording revenue of 8.542 trillion won and operating profit of 1.159 trillion won in 2027, and revenue of 10.286 trillion won and operating profit of 1.522 trillion won in 2028.