[Special Stock] LS Eco Energy Benefits from Surge in Electricity Demand

LS Eco Energy is showing strong performance. Securities firms' analysis that the company's earnings are improving due to increased power consumption from aging power grid replacement, offshore wind power, and data center construction appears to be influencing the stock price.

As of 9:28 AM on the 29th, LS Eco Energy is trading at 24,900 KRW, up 19.14% compared to the previous trading day.

In the first quarter of this year, LS Eco Energy achieved sales of 179.9 billion KRW, operating profit of 9.7 billion KRW, and pre-tax profit of 9.5 billion KRW. These figures represent increases of 2.0%, 84.0%, and 457.8% respectively compared to the same period last year.

Researcher Lee Sangheon of Hi Investment & Securities explained, "Not only is the aging power grid being replaced, but renewable energy supply such as offshore wind power is expanding, and power consumption is increasing globally due to data center construction driven by artificial intelligence (AI), leading to a rise in power grid construction projects worldwide."

He added, "Demand for wires such as ultra-high voltage cables is expected to continue increasing," and "From the end of this year, approximately 12 billion KRW worth of ultra-high voltage cables will be supplied to the Singapore Power Authority."

He emphasized, "In the case of Singapore, the power grid is being constructed solely with underground ultra-high voltage cables without transmission towers," and "in Denmark, alongside the construction of offshore wind farms, the demand for ultra-high voltage cables is increasing due to the undergrounding of overhead transmission lines." He also explained that "LS Eco Energy will supply ultra-high voltage cables worth approximately 30.51 million USD over three years to the Danish energy public enterprise Energinet."

He predicted, "As power grid construction projects increase worldwide, orders for ultra-high voltage cables and the like are rising," and "the increase in exports of ultra-high voltage cables will contribute to future sales and profitability improvements."