[Featured Stock] HD Hyundai Electric Soars 19%... 2Q 'Earnings Surprise'

Q2 Operating Profit Up 257% YoY
One of the Top Gainers in This Year's KOSPI Market
Data Center Benefits Triggered by AI Revolution

HD Hyundai Electric surged 19%. It reclaimed the 350,000 KRW mark after 6 trading days. The impact is attributed to the Q2 earnings announcement, which showed an 'earnings surprise' (a surprising performance far exceeding expectations).

As of 1:44 PM on the 23rd, HD Hyundai Electric was trading at 350,500 KRW, up 19.22% (56,500 KRW) from the previous day. During the session, it reached a high of 359,000 KRW. This is the first time since the 15th that HD Hyundai Electric's stock price has surpassed 350,000 KRW. It also came close to the all-time high of 363,000 KRW recorded on the 11th since its listing.

As the leading company in power equipment, HD Hyundai Electric announced that its Q2 consolidated sales reached 916.9 billion KRW, and operating profit was 210 billion KRW. This represents increases of 42.7% and 257.15%, respectively, compared to the same period last year. This is an 'earnings surprise' that far exceeded the securities market consensus (market average forecast) of 834.4 billion KRW in sales and 124.3 billion KRW in operating profit.

HD Hyundai Electric started this year at 80,100 KRW and has recorded a rise of over 300%. This is ranked among the top 5 in the entire KOSPI market. Compared to the historic low of 4,840 KRW in March 2020, it has increased more than 70 times. HD Hyundai Electric, a power equipment and energy solutions affiliate of HD Hyundai Group, was spun off in 2017 from the electrical and electronic systems division of HD Hyundai Heavy Industries. With the AI revolution prompting big tech companies to expand data centers aggressively, HD Hyundai Electric is enjoying a boom with a surge in demand for transformers it manufactures and produces, accumulating several years’ worth of orders. Many securities firms recommend HD Hyundai Electric as the top preferred stock among power equipment stocks.