Power Equipment Shortage Will Continue, And From Now On...! | Yoo Jaesun, Hana Securities Research Center Senior Research Fellow [Double Up]

Summary

Yoo Jaesun discusses the ongoing power equipment shortage and structural demand for transformers driven by AI data centers, reshoring, and renewable energy. He reaffirms his bullish view on LS Electric, Hyosung Heavy Industries, and HD Hyundai Electric despite recent pullbacks, and suggests buying on dips. He also mentions Sunil Electric as a secondary name to watch and notes the US transformer PPI as a key indicator.

• Yoo Jaesun is bullish on power equipment, especially transformer makers, due to structural demand from AI, reshoring, and renewable energy.
• He recommends LS Electric, Hyosung Heavy Industries, and HD Hyundai Electric as core holdings.
• Recent pullbacks are viewed as buying opportunities with unchanged fundamentals.
• Sunil Electric is mentioned as a smaller beneficiary worth watching.
• The US transformer PPI from the San Francisco Fed is highlighted as a key risk indicator.
• Short-term volatility from rate concerns and sentiment is acknowledged but not seen as changing the long-term thesis.
• Data center construction delays are largely due to power infrastructure bottlenecks.
• Yoo advises a long-term horizon and gradual buying on dips.