LS ELECTRIC, which posted strong results in the third quarter, is rallying early on the 23rd. As analysts raised their target prices for LS ELECTRIC one after another, citing expectations for future earnings growth, buying is seen to be flowing in.
As of 9:37 a.m. that day, LS ELECTRIC was trading at 352,000 won, up 32,500 won (10.17%) from the previous session. It climbed as high as 359,000 won intraday, hitting a 1-year high.
The previous day, LS ELECTRIC said its third-quarter consolidation revenue came to 1.2163 trillion won and operating profit to 100.8 billion won. That was up 19.1% and 51.7%, respectively, from a year earlier. The strong results were largely driven by continued growth in North American data centers and ultra-high-voltage transformers in its core global power business.
Eleven securities firms raised their target prices for LS ELECTRIC that day. LS Securities (370,000→430,000 won), Daishin Securities Co. (360,000→420,000 won), SK Securities (220,000→420,000 won), KB Securities (380,000→410,000 won), NH Investment & Securities (360,000→410,000 won), Shinhan Investment & Securities (360,000→400,000 won), Samsung Securities (352,000→400,000 won), IBK Securities (340,000→400,000 won), Korea Investment & Securities (350,000→390,000 won), DS Securities (350,000→380,000 won), and Hyundai Motor Securities (350,000→370,000 won) all raised their targets.
Han Young-su, Head of Team at Samsung Securities, said, "Operating profit fell 10% short of market expectations due to tariff costs, but those can be recovered with a time lag," and added, "With the current industry conditions favoring suppliers, next year's earnings, which serve as the basis for valuation (corporate value), will instead increase."
Researcher Jang Nam-hyun at Korea Investment & Securities said, "LS ELECTRIC signed supply contracts worth 250 billion won in the U.S. market in February and March and is awaiting additional orders of more than 100 billion won," and noted, "Based on delivery lead times more than 30% faster than competitors, it is expanding its customer base in the U.S. market."