LS Eco Energy shares surged more than 15% in early trading following news that the company supplied medium voltage (MV) underground cables to a solar power plant in the United States, boosting investor sentiment. Gaon Cable, which is also involved in the supply chain, saw its shares rise as well.
According to the Korea Exchange, as of 9:45 a.m. on September 16, LS Eco Energy's stock was trading at 57,600 won, up 7,750 won (15.55%) from the previous trading day. At the same time, Gaon Cable's shares increased by 1.88% compared to the previous day.
LS Eco Energy announced on September 15 that it had collaborated with Gaon Cable's U.S. subsidiary to supply MV underground cables to a solar power plant in the U.S. These cables are used to collect electricity generated within the solar power facility and transmit it to substation equipment.
The supply was arranged through a contract between Gaon Cable's U.S. subsidiary, LSCUS, and local customers, with LS Eco Energy's production facility in Vietnam, LS-VINA, manufacturing the products. This partnership effectively links the companies' U.S. sales network with the Vietnamese production base to establish a supply chain.
Notably, both LS Eco Energy and Gaon Cable are subsidiaries of LS Cable. This supply arrangement allows them to leverage their production and sales capabilities to provide cables to the U.S. solar power market.
Market analysts believe that this supply news has contributed to the rise in LS Eco Energy's stock price. There is growing interest in whether LS Eco Energy can expand its business in the U.S. solar power market by utilizing its Vietnamese production facility to supply products to U.S. solar power plants.
* This article has been translated by AI.
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