[Click eStock] "Hyosung Heavy Industries Continues Power Equipment Boom"

On July 2, LS Securities stated that Hyosung Heavy Industries likely met market expectations with its second-quarter results this year.

The company estimated that Hyosung Heavy Industries recorded sales of 1.3418 trillion won and operating profit of 124.9 billion won in the second quarter. These figures represent increases of 12% and 99%, respectively, compared to the same period last year.

Sung Jonghwa, an analyst at LS Securities, commented, "By segment, the construction division continues to face sluggish performance due to the downturn in the construction market," but added, "The scale of sales decline is decreasing, and profitability is also partially improving." He further emphasized, "The heavy industries division continues to grow thanks to the boom in the power equipment market," and highlighted, "On a consolidated basis, the second-quarter operating margin rose to 9.3%, up 4.1 percentage points from the same period last year."

Analyst Sung noted, "At Memphis Day, it was announced that the company secured new orders for ultra-high voltage equipment from xAI and is considering additional orders," and analyzed, "This should be recognized as a meaningful growth driver." He also expected the company to benefit, stating, "Recently, as power demand is increasing in the United States, including for data centers, the number of substations near urban areas is on the rise."