Samsung Securities on the 15th assessed HD Hyundai Electric's recently released 2026 revenue guidance as "a figure reflecting conservative assumptions, with a high likelihood that actual revenue will exceed it." It maintained its "Buy" investment rating and raised its target price to 1.02 million won from 890,000 won. The previous trading day's closing price for HD Hyundai Electric was 922,000 won.
Han Young-soo, an analyst at Samsung Securities, said, "Although the company's released 2026 revenue guidance came in about 9% below the market consensus and sparked debate, it was set based on conservative assumptions, so we are maintaining our existing revenue outlook."
Earlier, on the 6th, HD Hyundai Electric presented a 2026 revenue target of 4.35 trillion won. The revenue is on a consolidation basis and includes results from overseas subsidiaries such as Alabama, Atlanta, Texas, Yangzhong, and HD Hyundai Plaspo. For this year's expected order intake, it projected $4.22 billion (about 6.11 trillion won).
Han particularly noted, "HD Hyundai Electric has historically exceeded the revenue guidance presented at the start of the year by about 6%–7% in actual results," adding, "Given that it applies a group-level conservative exchange-rate assumption (1,350 won per dollar), the existing consensus is not unreasonable."
They also maintained a positive view on profitability. Han said, "The company is posting far superior profitability versus competitors because it sells its flagship transformers at a premium based on superior quality and delivery," adding, "Additional price hikes are also possible at this time."
There are also continued positive changes in product mix. Han said, "Orders for ultra-high-voltage transformers, where there are few competitors and price competitiveness is strong, are on the rise," noting, "It disclosed orders for 765 kV ultra-high-voltage transformers last year and early this year, respectively."
On the cost side, it is passing on tariff burdens and raw material price increases to customers, so variables that could affect profitability are limited.
The mid- to long-term growth visibility is also favorable. Han said, "The company decided to expand capacity ahead of competitors and is executing on it," adding, "The expansion now underway will drive top-line growth next year." Han also said, "We plan to complete product development within this year to preempt the market for eco-friendly gas-insulated switchgear (GIS)."