Shinhan Investment & Securities said on the 10th that ILJIN Electric's third-quarter results grew on high-margin projects in the transformer institutional sector and the expansion of ultra-high-voltage cables in the wire institutional sector. It kept its investment rating at Buy and raised its target price to 70,000 won from 50,000 won. ILJIN Electric's previous trading day closing price was 53,900 won.
Heo Seong-gyu, senior researcher at Shinhan Investment & Securities, said, "As high-margin projects in the United States got into full swing in the transformer (heavy electrical) institutional sector, the third-quarter operating margin reached 23.9%."
The order backlog in the heavy electrical institutional sector was $1.23 billion (about 1.8 trillion won), up 10.9% from the end of the previous year. In particular, sales in the Americas were 134.2 billion won, up 160% from a year earlier, accounting for 70.4% of the total order backlog and driving growth.
Heo added, "Through the London branch, the company achieved its first order worth 10 billion won, marking a full-fledged entry into the European market," and said, "With the completion of plant expansion, annualized production capacity (Capa) is expected to increase from 300 billion won in 2024 to 433 billion won in 2026."
The wire institutional sector also showed strong growth centered on ultra-high-voltage cables. Heo said, "As the share of ultra-high voltage expanded to 7.6%, cumulative sales in the wire institutional sector in the third quarter this year surged 43.7% on-year to 1.1072 trillion won," adding, "In the process, it offset the decline in sales of copper bare wire, a low-margin product, which were in the 190 billion won range."
By region, high-power cable sales shares were 57.3% in Southeast Asia and 17.2% in the Americas. Senior researcher Heo said, "By investing 17.6 billion won in 2025, the company expanded high-power cable Capa in 2026 to 620 billion won from the existing 540 billion won," and noted, "If the HVDC 525 kV technology under development is completed, orders at home and abroad are expected."
ILJIN Electric's consolidated third-quarter sales were 450.2 billion won and operating profit was 35.3 billion won. Those figures rose 35.8% and 140.8%, respectively, from a year earlier.