[Featured Stock] HD Hyundai Electric Rises 10%... Strong Performance on Record Export Growth

Power Equipment Industry Highlights and Related Stocks Rally Together
Representative Sector of AI Beneficiaries
Annual Record Export Performance Virtually Confirmed

HD Hyundai Electric, the leading stock in power equipment, is recording double-digit gains for the first time in a while. The power equipment sector is once again highlighted as 'record-breaking' in exports, leading to a simultaneous rally in power equipment stocks.

As of 1:46 PM on the 19th, HD Hyundai Electric is trading at 314,500 KRW, up 31,000 KRW (10.93%) from the previous trading day. This is the first time since the 2nd that the stock price has recovered above the 300,000 KRW mark. Alongside HD Hyundai Electric, Hyosung Heavy Industries and LS ELECTRIC, considered the three major domestic power equipment companies, are also showing gains of 10.02% and 5.10%, respectively.

Power equipment stocks are considered beneficiaries of artificial intelligence (AI). This is because operating data centers, which big tech companies are rapidly expanding, consumes massive amounts of electricity. As a result, power equipment stocks have seen significant price increases this year. HD Hyundai Electric rose from the 80,000 KRW range at the beginning of the year to a peak of 370,000 KRW, and the other two of the three major power equipment companies also more than doubled compared to the start of the year. However, since reaching their peak in July, the stocks have shown sluggish trends due to overlapping concerns such as disappointing third-quarter earnings forecasts.

According to the power industry, cumulative transformer export value reached 1.032 billion USD by July this year, already achieving 87% of last year’s total annual export value. Achieving the highest annual export record this year is virtually confirmed. According to KB Securities, global annual investment in power grids is expected to increase from 235 billion USD in 2020 to 636 billion USD by 2050, with the U.S. market particularly leading growth in the power equipment industry.

Kim Dong-won, Head of Research at KB Securities, said, “The boom in the power equipment industry will last at least 10 years,” adding, “Domestic major companies are expected to expand their market share globally based on proactive facility investments and technological capabilities.”