[Featured Stocks] Power Stocks Rally... HD Hyundai Electric & Jeryong Electric Hit 52-Week Highs

Surging AI Demand in the US Drives Soaring Power Consumption
Especially Beneficial for Power Transformer Manufacturers
HD Hyundai Electric and Jeryong Electric Hit 52-Week Highs

Electric power stocks are showing strong gains in early trading. The rally continues due to the surge in electricity demand triggered by the artificial intelligence (AI) boom.

As of 9:23 a.m. on the 4th, Jeryong Electric is trading at 53,400 won, up 11.37% (5,450 won) from the previous day. It surpassed the 52-week high of 51,300 won recorded the day before in just one day. Jeryong Electric is the only listed company whose sales are 100% comprised of transformers. It is currently recording the highest increase among stocks related to the power equipment sector.

Recently in the United States, there has been a flood of discussions about the surge in electricity demand due to the rapid increase in AI demand. This is particularly linked to the increased demand for power transformers. This trend is acting as a positive factor for domestic power equipment-related stocks.

HD Hyundai Electric, which owns a transformer manufacturing plant in the U.S., is also trading up 7.07% (13,100 won) at 198,400 won. It surpassed the 52-week high of 190,500 won recorded on the 2nd in just two trading days. HD Hyundai Electric is an affiliate of HD Hyundai Group, established in 2017 through the physical division of Hyundai Heavy Industries. Its domestic sales ratio decreased from 53.7% in 2021 to 38.7% last year, while overseas sales ratios, particularly in North America and the Middle East, have significantly increased.

In addition, LS Electric (6.99%) and Iljin Electric (6.62%) are also showing strong gains exceeding 5%. LS Electric is a manufacturer of power transmission and distribution equipment and systems, including low-voltage devices, high-voltage devices, and meters. Iljin Electric produces medium-voltage equipment such as wires, transformers, and circuit breakers, as well as other power equipment that constitutes power systems.