01 010120.KS Loading... : Bullish and Bearish Analyst Opinions

AI agent services (e.g., Claude by Anthropic) are driving massive data center construction, which in turn creates an acute shortage of power equipment (transformers, switches, etc.). Korean power equipment companies—Hyosung Heavy Industries, LS Electric, Hyundai Electric, and Sanil Electric—have accumulated a combined order backlog of 32.6 trillion won, with delivery slots extending to 2031. Competitors from China are geopolitically excluded, and French suppliers have 4-5 year lead times, leaving Korea as the only reliable source that can meet tight delivery schedules. This structural advantage supports sustained revenue growth and earnings visibility for these companies regardless of recent stock price increases.

Power equipment stocks like LS Electric, Hyosung Heavy Industries, and HD Hyundai Electric continue their uptrend driven by global electrification and grid investment. The sector remains strong alongside semiconductors.

Korean power equipment companies are benefiting from three structural drivers: AI data center grid upgrades, Middle East mega-infrastructure, and US grid modernization. Korean companies like HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric have competitive advantages in local production and supply-chain constraints, winning long-term 10-year contracts. Order backlogs are at record highs, and the sector has further upside.

Power equipment stocks (Hyosung Heavy Industries, LS Electric, Hyundai Electric) remain cheap on a global basis (e.g., Hyosung Heavy at 40x P/E vs global peers at higher multiples). The uptrend has been intact for 4 years and is still strong, driven by AI and electrification demand. Hold these positions; do not sell.

The US ban on Chinese inverters will boost Korean power equipment makers LS Electric, HD Hyundai Electric, and SNT Motiv as they replace Chinese market share.

Power infrastructure stocks (LS Electric, Hyosung Heavy Industries, HD Hyundai Electric) are benefiting from AI-driven demand for electricity and grid upgrades. The sector shows strong earnings momentum and there is talk of stock splits, which adds to investor interest. These stocks are a key theme alongside semiconductors.

Electric wire and cable stocks (Daehan Cable, Daewon Cable, LS Electric, Hyosung Heavy Industries, Sanil Electric) are a global theme driven by power grid bottlenecks and AI data center demand. The sector is experiencing strong momentum and remains a core theme for 2026.