DS Investment & Securities analyzed on the 22nd that it is important for LS ELECTRIC that artificial intelligence (AI) momentum comes alive rather than the performance. The target price is 270,000 won, and the investment opinion is maintained as 'buy.'
Researcher Kim Jin-hyung from DS Investment & Securities said, "LS ELECTRIC signed a contract to supply a distribution board and power equipment for a U.S. big tech data center in March. It is expected that total sales for this project will reach 250 billion won, with an operating profit margin estimated around 15%."
However, there is a forecast that securing additional orders for ongoing supply projects is important. Researcher Kim noted, "A slowdown in the U.S. economy is expected due to tariff issues, which may reduce future investment in AI infrastructure, and since the March orders came before the tariff issues emerged, additional contracts will be a driving force for future stock price increases."
DS Investment & Securities estimated LS ELECTRIC's revenue this year at 5.1 trillion won, up 11.7% from the previous year, and operating profit at 467.8 billion won, an increase of 20%. Researcher Kim said, "Based on a backlog of over 3 trillion won in power infrastructure orders, performance is expected to improve quarter by quarter."