BNK Investment & Securities on April 22 raised its target price for LS Eco Energy to 80,000 won from 60,000 won, citing the company’s record quarterly revenue and expanding demand for power transmission lines. It maintained its “buy” rating.
Kim Jang-won, an analyst at BNK Investment & Securities, said first-quarter revenue and operating profit both hit all-time highs, driven by orders for an extra-high-voltage power line project in Vietnam and strong performance in the materials business.
He said the company has entered a period of structural growth as investment in power infrastructure expands. Kim added that LS Eco Energy is diversifying demand by exporting to the United States while producing in Vietnam, and that a higher share of high-voltage and extra-high-voltage power lines is improving profitability.
Kim said demand for higher-margin products such as underground cables, extra-high-voltage power lines and subsea cables is expected to rise under Vietnam’s power development plan and urbanization policies, which he said should further widen profit growth over the medium to long term.
He also said the company has significant room to expand its business, supported by affiliates that are competitive in the global power infrastructure market, and that a valuation re-rating is possible given its higher profitability than peers.
* This article has been translated by AI.
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