South Korea: HD Hyundai Electric, LS Electric and Hyosung Heavy Industries are expected to extend their earnings growth into the third quarter as North American grid investment and AI data-centre demand continue to drive orders for transformers and switchgear.
Combined operating profit is forecast at $587 M (₩829 B), up 13.6 % from the second quarter, according to FnGuide estimates. Combined revenue is expected to rise 9 % to approximately $3.4 B (₩4.8 trillion).
Demand for high-margin North American power equipment remains a key driver. HD Hyundai Electric reported an $8.49 B order backlog at the end of June, including growing demand for 765 kV transformers, while Hyosung Heavy Industries raised its full-year heavy-industry order target to $8.5 B (₩12 T).
Factory utilisation is also approaching capacity. HD Hyundai Electric’s main Korean facilities operated at around 95 % utilisation, while Hyosung Heavy Industries reported approximately 105 % across major plants. LS Electric’s Cheongju Plant 1 reached 96 %.
The demand is expanding beyond transformers. Switchgear, circuit breakers, GIS and distribution equipment are increasingly being ordered for data-centre and transmission projects.
LS Electric recently secured a $34.3 M contract with Bloom Energy to supply distribution equipment, including low-voltage switchgear, for a hyperscale data centre in Wyoming. It has also won a $75.3 M (₩106.4 B) order for 38 kV distribution systems for another North American AI data-centre project.
European demand is also strengthening, with HD Hyundai Electric reporting a sharp increase in orders and pursuing long-term agreements for its 420 kV eco-friendly GIS.
“The centre of AI competition is shifting to power infrastructure,” said Eugene Investment & Securities analyst Hwang Sung-hyun.
Source: Finance.biggo.com
