Shinhan Investment & Securities said on the 24th that it is difficult to predict when the boom for HD Hyundai Electric will end. It maintained a "buy" rating and raised the target price to 1 million won from the previous 525,000 won.
Researcher Lee Dong-heon at Shinhan Investment & Securities said, "It achieved a record-high margin despite the U.S. tariff," and noted, "With orders in Europe joining demand for U.S. data centers, reshoring, and transmission grid replacement, expectations for long-term growth lifted the share price, and valuation pressure is an issue that time will resolve."
Shinhan Investment & Securities projected HD Hyundai Electric's third-quarter revenue at 995.4 billion won, up 26% from a year earlier, and operating profit at 247.1 billion won, up 51% over the same period. Revenue from power equipment surged 88% to 587.8 billion won, driving the earnings increase.
New orders in the third quarter also rose 71% from a year earlier to $1.21 billion. The researcher said, "The recently disclosed order for a 765-kilovolt (kV) transformer has symbolic meaning for the scaling up and lengthening of U.S. transmission grid investment," adding, "The U.K. 400 kV order also explains the simultaneous boom, and gas-insulated switchgear (GIS) will be an additional growth driver."