Hyosung Heavy Industries is experiencing strong gains due to expectations of benefits from the expansion of AI data centers in North America and increased investment in power infrastructure.
As of 2:46 PM on August 5, the company’s stock was trading at 2,992,000 won, up 12.69% (337,000 won) from the previous trading day, according to the Korea Exchange.
Analysts noted that despite recent stock adjustments, the fundamentals of the power equipment sector are actually strengthening. Demand for high-voltage transformers and circuit breakers necessary for AI data center power supply is rapidly increasing in the United States.
Daishin Securities reported that Hyosung Heavy Industries has raised its guidance for orders in the industrial sector this year from 8.45 trillion won to 12 trillion won. The revenue growth forecast has also been increased from 15% to 25%.
In particular, a joint venture with U.S. power infrastructure company Quanta Services is set to begin production of gas-insulated switchgear (GIS) circuit breakers in the fourth quarter of this year. This expansion of production capabilities in the U.S. is expected to allow for a more proactive response to local demand.
Heo Min-ho, a researcher at Daishin Securities, stated, "While stock prices have retreated, fundamentals are strengthening. The introduction of dedicated pricing plans for AI data centers and the expansion of U.S. power equipment production will accelerate order increases."
* This article has been translated by AI.
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