Donald Trump, the President of the United States, has signed an executive order limiting the purchase, import, and installation of certain foreign power equipment in the U.S. to protect the national power grid. This move has led to a surge in shares of domestic power equipment companies, as there are growing expectations that these firms will benefit from the exclusion of power equipment from countries like China, which pose security concerns.
As of 9:58 a.m. on August 27, HD Hyundai Electric was trading at 792,000 won, up 8.05% from the previous trading day, according to the Korea Exchange.
On August 26, Trump signed the executive order aimed at enhancing the stability and security of the U.S. power grid. The order restricts the purchase, import, and installation of foreign equipment used in large-scale power grids that could pose national security risks due to cyberattacks or supply chain disruptions.
The regulations target equipment such as transformers and high-voltage circuit breakers used in transmission networks of 69kV and above, as well as generators, inverters, and battery energy storage systems (BESS). Digital components, including related software, firmware, and remote access features, may also be subject to regulation. The order allows for the isolation, replacement, or removal of already installed equipment if necessary.
Market analysts believe this action will effectively limit the entry of Chinese power equipment into the U.S. market. With increasing investments in power infrastructure driven by the expansion of data centers and the AI industry in the U.S., the exclusion of Chinese equipment could create more opportunities for domestic power equipment companies, which is reflected in the rising stock prices.
HD Hyundai Electric has shown strong performance, reporting a consolidated revenue of 1.1418 trillion won for the second quarter of this year, a 26.0% increase compared to the same period last year. Operating profit rose by 37.3% to 287 billion won, while net profit increased by 45.2% to 206.1 billion won. For the first half of the year, cumulative revenue reached 2.1783 trillion won, with operating profit at 545.3 billion won, marking increases of 13.4% and 27.6%, respectively.
* This article has been translated by AI.
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