[Click eStock] "LS Marine Solution, a Hidden AI Beneficiary"

On the 18th, SK Securities forecasted that LS Marine Solution would benefit from the increased demand for submarine cables in data centers driven by artificial intelligence (AI). The target stock price was maintained at 25,000 won.

Nam Min-sik, a researcher at SK Securities, stated, "Meta announced a submarine cable project called Project Waterworks on the 14th (local time)." He explained, "According to the announcement, the plan is to connect the United States, India, Brazil, and South Africa."

He added, "They plan to invest multi-billion dollars over several years," and "LS Marine Solution constructed the ECHO submarine cable project connecting the U.S. West Coast, Singapore, and Indonesia."

Furthermore, he emphasized, "This project involved Meta and Google," and "LS Marine Solution contracted with Japan's NEC to carry out submarine cable laying and burial work from April 2021 to November 2022." He analyzed, "If submarine cable construction projects ordered by big tech companies become more concrete in the future, there is a high possibility of revaluation as an AI-related stock."

Researcher Nam explained, "The three energy laws, including the Power Grid Act, Radioactive Waste Management Act, and Offshore Wind Power Special Act, have passed the Industrial Committee subcommittee," adding, "The construction speed of domestic transmission and distribution networks will accelerate." He predicted, "Until now, Korea Electric Power Corporation (KEPCO) has led and invested in transmission and distribution network construction," and "According to the Power Grid Special Act, power grid construction will be carried out at the national level under a government-wide initiative." He also said, "The Offshore Wind Power Special Act aims to shorten permits and approvals as the government selects locations."

Researcher Nam anticipated, "Both power grids and offshore wind power projects have been delayed due to local community acceptance issues," and "With the passage of the special laws, the speed of projects carried out by LS Marine Solution will accelerate."