[Asia Economy Reporter Hyungsoo Park] The government will announce a roadmap for power grid expansion in the first half of this year. It will reflect the NDC enhancement in the 9th Long-term Transmission and Transformation Plan and finalize it before establishing the '10th Basic Plan for Electricity Supply and Demand'. LS ELECTRIC is expected to benefit from the power grid reinforcement.
Hana Financial Investment expects LS ELECTRIC to benefit as the government is likely to invest 78 trillion KRW by 2030 to strengthen the power grid.
Jaeseon Yoo, a researcher at Hana Financial Investment, explained, "In addition to the previously planned transmission and transformation investment of 23.4 trillion KRW and distribution investment of 2.41 trillion KRW, an additional 30 trillion KRW is estimated. Existing renewable energy policies focused on power generation facilities, but now proactive investments for stable operation are expected."
He added, "Long-term benefits are anticipated in the phase of expanding investment in power infrastructure."
It is estimated that sales reached 753 billion KRW in the fourth quarter of last year, an increase of 23.4% compared to the same period last year.
Researcher Yoo analyzed, "As deferred sales of power infrastructure were properly recognized, growth appeared in sectors excluding renewables, and operating profit increased by 35.7% year-on-year to 44.3 billion KRW."
He continued, "Power equipment saw a slight improvement in profit margin compared to the previous year due to growth in scale and exchange rates, and overseas demand is expected to remain solid, so stable performance is expected to continue this year as well."
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