On the 14th morning, LS ELECTRIC shares are up more than 7%. Investor sentiment appears to have improved on positive brokerage coverage that said last year's new orders would exceed the annual guidance (outlook).
As of 9:26 a.m. that day, LS ELECTRIC is trading on the main board at 532,000 won, up 35,500 won (7.15%) from the previous session.
Brokerages see LS ELECTRIC as having exceeded its annual order guidance last year. The company presented an annual order target of 2.9 trillion won, and it is estimated to have secured more than 1 trillion won in new orders in the fourth quarter alone. Considering the cumulative orders in the first to third quarters (about 2.1 trillion won), the view is that the company will significantly beat its guidance on an annual basis.
Lee Han-gyeol, a Kiwoom Securities researcher, said, "Overall demand for power equipment is solid, with an increase in orders centered on North America, the core region for growth," adding, "In particular, it is positive that orders for data center switchboards and extra-high-voltage transformers are rising at the same time."
Lee added, "From a mid- to long-term perspective, data center switchboard products are expected to gain market share thanks to a diversification of customers," and noted, "As the supply-demand imbalance for extra-high-voltage transformers has still not been resolved, orders for transformer products will also show solid growth." He set a target price of 620,000 won.