HD Hyundai Electric: Announces long-term supply agreement with global Big Tech company; Buy

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HD Hyundai Electric: Announces long-term supply agreement with global Big Tech company; Buy

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HD Hyundai Electric

Announces long-term supply agreement

with global Big Tech company; Buy

Maintain Rating: BUY | PO: 1,360,000 KRW | Price: 1,031,000 KRW

Long-term supply agreement with global big tech company 02 July 2026

HDE announced on 2 July that it has signed a long-term supply agreement (Jul’26-Jan’29) Equity

with an unnamed global Big Tech company for distribution equipment and power

Sun Jung Lee >>

equipment worth up to W1.12tn (US$721mn), equivalent to 27.5% of 2025 sales and Research Analyst

9.1% of 1Q26 backlog. The actual orders will proceed according to the customer’s data Merrill Lynch (Seoul) sunjung.lee@bofa.com

center construction schedule. It is noteworthy that HDE supplies a bundled package

Taekyoung Ha >>

combining distribution equipment (distribution transformers) and power equipment Research Analyst

(high-voltage transformers); per local press, the contract amount reportedly consists of Merrill Lynch (Seoul) taekyoung.ha@bofa.com

W554bn for distribution equipment and W567bn for power equipment.

US data center market entry, accretive to valuation

As HDE has secured a large-scale contract directly with a global Big Tech firm, we Stock Data

believe this agreement establishes a meaningful track record in the US data center Price 1,031,000 KRW

market, supplying distribution equipment. This contract represents the first tangible Price Objective 1,360,000 KRW

outcome of HDE’s strategic initiatives to expand into distribution equipment beyond its Date Established 29-Apr-2026

high-voltage transformer-centric portfolio. The expansion of distribution equipment Investment Opinion C-1-7

could provide upside to 2026-28 earnings, esp.