[Click eStock] "Iljin Electric, Expected to Benefit from Data Center Power Demand"

On the 16th, SK Securities analyzed Iljin Electric, expecting benefits from data center and reshoring power demand. The investment opinion 'Buy' and the target price of 40,000 KRW were maintained.

SK Securities forecasted that Iljin Electric's sales and operating profit for the third quarter will increase by 20.6% and 13.9% year-on-year to 344 billion KRW and 18 billion KRW, respectively. Naminsik, a researcher at SK Securities, said, "Since the second quarter of this year, exports of high-voltage cables have been on the rise, but due to differences in quarterly shipment volumes, operating profit is expected to decrease compared to the previous quarter."

He added, "The power equipment cycle is still ongoing, and with the surge in power demand from data centers and reshoring, the United States is experiencing a power shortage. To address this, utility companies' CAPEX estimates are being revised upward, and Korean power equipment companies are expected to benefit."

He also stated, "Iljin Electric is judged to be the most attractive in terms of corporate value and stock price within the power equipment sector. A new factory is being constructed in Hongseong, and growth from expansion is expected from the second half of next year. There are still entities such as ETFs and foreign investors who can influence stock supply and demand."