[Featured Stock] Hyosung Heavy Industries Hits New High First Among Three Power Equipment Companies in 'Summer Rally'

Q3 Earnings 'Earnings Surprise'... Operating Profit Up 17.8%
Expectations Rise for Increased North American Power Share in Q4
Impact of Large European Contract Wins... Europe Alone Exceeds 1 Trillion Won

Hyosung Heavy Industries recorded a 52-week high for the first time in four months. The third-quarter earnings results indicate that power demand from the U.S. is effective, and strong performance in the European market appears to have a positive impact on the stock price.

As of 9:42 a.m. on the 6th, Hyosung Heavy Industries is trading at 474,000 KRW, up 5.33% (24,000 KRW) from the previous trading day. This surpasses the 52-week high of 469,000 KRW recorded on May 28. Among the three major domestic power equipment companies?Hyosung Heavy Industries, HD Hyundai Electric, and LS ELECTRIC?Hyosung Heavy Industries is the first to break its record high set during this summer's 'summer rally.'

Hyosung Heavy Industries showed an 'earnings surprise' that exceeded market expectations in its third-quarter results. Third-quarter sales increased by 10.2% year-on-year to 1.1452 trillion KRW, and operating profit rose by 17.8% compared to the same period last year to 111.4 billion KRW. Dongheon Lee, a researcher at Shinhan Investment Corp., said, "The third-quarter results exceeded the consensus (average forecast by securities firms) by 12% due to an increase in power margin rates," adding, "From the fourth quarter, the effects of expanding North American power share, reflecting price increases, and volume growth will be incorporated."

Hyosung Heavy Industries is building a solid presence not only in the U.S. but also in the European market. Recently, it signed a supply contract for ultra-high voltage power equipment with Orsted, the world's largest offshore wind power company based in Denmark. By 2027, it plans to supply 400kV ultra-high voltage transformers and reactors (power quality improvement devices) for the UK’s ‘Hornsea 4’ offshore wind project. This project involves constructing an offshore wind farm with a power capacity of 2.4GW near the Yorkshire coast in northeastern England. With this order, Hyosung Heavy Industries’ total orders in Europe this year have exceeded 1 trillion KRW.