[Featured Stock] Hyosung Heavy Industries Rises on News of Expanding Ultra-High Voltage Transformer Orders in the US

Up 9% Compared to the Previous Day

Hyosung Heavy Industries is showing strong performance in early trading on the 22nd following news of expanded overseas orders for power equipment, including ultra-high voltage transformers.

As of 9:57 AM on the day, Hyosung Heavy Industries is trading at 508,000 KRW, up 9.01% compared to the previous trading day.

Hyosung Heavy Industries has significantly increased overseas orders due to rising demand for ultra-high voltage transformers in the United States. As of the end of the third quarter last year, the order backlog stood at 7.3 trillion KRW, more than double that of two years ago. Currently, about 70% of transformers in the U.S. have reached their replacement cycle (30 years), leading to increased replacement demand.

To expand ultra-high voltage transformer production capacity, Hyosung Heavy Industries is aiming to complete the expansion of its Changwon plant within the year, and next year, it plans to expand its ultra-high voltage transformer factory located in Memphis, Tennessee, USA. Since newly inaugurated U.S. President Donald Trump emphasizes strengthening domestic manufacturing and AI (artificial intelligence), demand for power equipment in the U.S. is expected to continue.

Last year's fourth-quarter performance is expected to exceed consensus. Sales are projected to increase 23% year-on-year to 1.586 trillion KRW, and operating profit is expected to rise 117% to 137 billion KRW. Mirae Asset Securities analyzed, “From early 2023, revenue recognition for ultra-high voltage transformers with higher unit prices will gradually take place,” adding, “Expansion of subsidiaries overseas, such as in India (circuit breakers) and the U.S. (ultra-high voltage transformers), will continue to contribute to overall company margins.”