Industry officials said April 27 that Hyosung Heavy Industries, LS Electric, HD Hyundai Electric and Iljin Electric generally expanded sharply from a year earlier but saw some quarter-on-quarter easing. They cited a base effect from record fourth-quarter results and the seasonal first-quarter slowdown.
Hyosung Heavy Industries reported first-quarter operating profit of 152.3 billion won, up 48.8% from a year earlier but down from the previous quarter as some revenue recognition was delayed during the off-season. The company secured about 4 trillion won in new orders for the quarter, and sales of ultra-high-voltage transformers are rising quickly, led by North America.
Hyosung Heavy Industries’ share price recently topped 3 million won, and it traded above 4 million won intraday that day. The company has maintained that it is not reviewing a stock split.
LS Electric posted first-quarter operating profit of 126.6 billion won, up 45% from a year earlier and a quarterly record, though slightly below 129.7 billion won in the prior quarter. With distribution-equipment orders for Amazon Web Services data centers being reflected in results, demand is spreading beyond ultra-high-voltage transformers into distribution. The company is also diversifying products from AC-focused equipment to DC power equipment.
HD Hyundai Electric, which was set to report earnings April 28, was expected to show a similar pattern. FnGuide estimated first-quarter operating profit at about 270 billion won, up from a year earlier but slightly down from the previous quarter, reflecting the seasonal slowdown and some delayed revenue recognition for North American projects.
Iljin Electric was also expected to extend its growth streak. First-quarter operating profit was forecast at about 50.8 billion won, up 49.2% from a year earlier, supported by expansion at its second plant in Hongseong, a higher share of higher-priced transformers for North America, and revenue recognition from long-term order backlogs.
The four companies have already secured at least three years of work, with backlogs at record levels. Hyosung Heavy Industries’ heavy-industry division had an order backlog of about 15 trillion won. LS Electric’s backlog stood at 5.6425 trillion won at the end of the first quarter, up 13% from the prior quarter. HD Hyundai Electric had about 9.4 trillion won, and Iljin Electric about 2.39 trillion won.
“The quarter-on-quarter decline in sales largely reflects the seasonal first-quarter slowdown and the fact that recently won orders have not yet been recognized as revenue,” an industry official said. “The boom in power equipment is expected to continue for the next four to five years, and backlogs are sufficient.”
* This article has been translated by AI.
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