HD Hyundai Electric shares soar on expectations of increased orders
U.S. power infrastructure and AI data center investments drive demand
Company announces record investment to expand transformer production
HD Hyundai Electric, a power equipment subsidiary of HD Hyundai, is showing a sharp rise as expectations for improved performance grow due to favorable factors such as the expansion of power infrastructure investment in the United States.
As of 12:38 PM on the 24th, HD Hyundai Electric is trading at 445,500 KRW, up 9.06% from the previous trading day. During the session, it even reached an all-time high of 450,000 KRW.
Since the inauguration of President Donald Trump, there appears to be strong buying interest as the U.S. has been making large-scale investments in artificial intelligence (AI). Power demand is expected to surge as the U.S. builds data centers to establish AI infrastructure. On the 21st (local time), the Trump administration announced an AI investment plan worth 500 billion USD (718.45 trillion KRW) in collaboration with OpenAI, Oracle, Japan’s SoftBank, and others.
HD Hyundai Electric has decided to make an additional investment of 400 billion KRW, the largest in its history, to secure production capacity for power equipment such as ultra-high voltage transformers. Through this, the annual production of ultra-high voltage transformers at the Ulsan plant is expected to increase from 300 units to 360 units, and production at the Alabama plant in the U.S. is expected to rise from 100 units to 150 units annually.
Last year, HD Hyundai Electric recorded an annual operating profit of 669 billion KRW, a 112.2% increase compared to the previous year. Sales also grew 22.9% year-on-year to 3.3223 trillion KRW. In particular, sales in the power equipment and distribution equipment sectors increased by 34.5% and 34.8%, respectively, boosting overall sales. The financial structure is also improving, with the debt ratio continuously decreasing over the past three years.
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