HD Hyundai Electric: ~15% decline post 2Q results appears overdone. Accumulate on dip

Research evidence excerpt

HD Hyundai Electric: ~15% decline post 2Q results appears overdone. Accumulate on dip

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

29 July 2026

HD Hyundai Electric Overweight

267260.KS, 267260 KS

~15% decline post 2Q results appears overdone. Price (29 Jul 26):W576,000

Accumulate on dip Price Target (Jun-27):W1,375,000

Hyundai Electric’s share price plunged by 15% today post the release of 2Q results Power Equipment and Utilities

AC(note), vs KOSPI’s 6% decline. We believe investors were disappointed by the 20% Stephen Tsui, CFA

sequential decline in new orders in 2Q and limited capacity addition by the (852) 2800-8592

company in high-voltage products. We believe such concerns are overdone, and stephen.tsui@jpmorgan.com

the share decline creates an attractive entry point. On the 20% qoq decline in new Vento Suen

orders, we highlight that there is strong seasonality in order intake (figure 4), and (852) 2800-8546

2Q24/2Q25 also posted 40%/25% qoq decline in orders. This doesn’t imply the vento.suen@jpmorgan.com

peaking of the power equipment cycle, in our view, as lead times remain elongated, Alan Hon

and the company commented that margins still expanded sequentially for the new (852) 2800-8573

alan.hon@jpmorgan.com

orders during 2Q. GEV/Bloom Energy strong 2Q results also signal strong power J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

equipment demand in the US. While capacity expansion is limited in the near term, Morgan Broking (Hong Kong) Limited

the company mentioned it will consider adding capacity should it sign more long-

term contracts with hyperscalers. We believe management is taking a wait-and-see

and prudent approach rather than completely ruling out capacity expansion. Even