LS Electric: NDR takeaways on revised new orders guidance, data center opportunities and capacity expansion

Research evidence excerpt

LS Electric: NDR takeaways on revised new orders guidance, data center opportunities and capacity expansion

J P M O R G A N Asia Pacific Equity Research

28 July 2026

LS Electric Neutral

010120.KS, 010120 KS

NDR takeaways on revised new orders guidance, data Price (28 Jul 26):W175,300

center opportunities and capacity expansion Price Target (Jun-27):W200,000

Key takeaways from LS Electric’s NDR call include: (1) Orders and guidance Power Equipment and Utilities

ACflexibility—FY26 new orders guidance was revised to W6.0tn–6.5tn, with the Stephen Tsui, CFA

W0.5tn upside range (on top of the W6tn) reflecting uncertainty in timing/size of (852) 2800-8592

incremental awards; management views orders on a half-year basis, expects stephen.tsui@jpmorgan.com

≥W3.0tn of additional 2H orders, and sees strong momentum in data centers, Vento Suen

hyperscaler demand, and UHV transformers, with potential for another update by (852) 2800-8546

end-3Q if awards pull forward. (2) Data center execution resilient—despite vento.suen@jpmorgan.com

market concerns around US moratoriums and construction delays, management Alan Hon

has not seen disruptions across active hyperscaler-related projects, and noted that (852) 2800-8573

alan.hon@jpmorgan.com

end users are pushing for on-time deliveries; long-term supply agreement J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

discussions with major US tech companies are progressing. (3) Margins and Morgan Broking (Hong Kong) Limited

pricing stance—after 1H metal-cost pressure, margins should improve in 2H on

the back of the mix and normalization, while pricing stays stable to build share;

core switchgear/high-voltage transformer margins remain healthy and are

expected to trend better in 2H versus 1H. (4) Capacity and backlog conversion