The news that HD Hyundai Electric is expanding its factory has led to a rise in its stock price.
As of 9:54 a.m. on the 20th, HD Hyundai Electric is trading at 432,500 won, up 3.47% from the previous trading day.
According to the power equipment industry the previous day, HD Hyundai Electric plans to invest about 400 billion won to expand its transformer factories in Alabama, USA, and Ulsan. This investment is the largest since HD Hyundai Electric became independent from HD Hyundai Heavy Industries in 2017.
The growth of the artificial intelligence (AI) industry has increased expectations for the high-voltage transformer market, which is interpreted as motivation for this investment. The industry anticipates that this expansion will increase sales by 200 billion won.
Na Min-sik, an analyst at SK Securities, noted, "The key variable that will determine HD Hyundai Electric's performance this year is whether the power device cycle is prolonged," adding, "As long as the investment scale of utility companies in the upstream industries does not shrink, the cycle will continue this year as well."