HD Hyundai Electric: Lifts 2026 new order guidance; key takeaways from CEO meeting

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HD Hyundai Electric: Lifts 2026 new order guidance; key takeaways from CEO meeting

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HD Hyundai Electric

Lifts 2026 new order guidance; key

takeaways from CEO meeting

Maintain Rating: BUY | PO: 1,360,000 KRW | Price: 947,000 KRW

Raises 2026 new order guidance by 23% to US$5.19bn 07 July 2026

On 6 July, HD Hyundai Electric (HDE) raised its 2026 new order guidance by 23% to Equity

US$5.19bn, from US$4.22bn, implying 21% YoY growth (vs. US$4.27bn in 2025) and 7%

Sun Jung Lee >>

above our forecasts. Given that HDE registered US$1.80bn new orders in 1Q26, the Research Analyst

updated guidance implies US$3.39bn of new orders in 2Q-4Q26, rising by 15% YoY. We Merrill Lynch (Seoul) sunjung.lee@bofa.com

could attribute the upward revision in guidance to (1) higher demand for high-

Taekyoung Ha >>

specification products, including 765kV high-voltage transformers; (2) expectation of a Research Analyst

faster-than-expected ramp-up of capacity under expansion, underpinned by confidence Merrill Lynch (Seoul) taekyoung.ha@bofa.com

in securing workforce; (3) rising demand for distribution transformers from the North

American data center operators (see our report on a long-term supply agreement from a

Big Tech company); and (4) growth in rotating business, driven by expanding applications

of generators for data centers (see our report on upsides from rotating business). Stock Data

Expanding into distribution business; accretive to earnings Price 947,000 KRW

Price Objective 1,360,000 KRW

We attended HDE’s analyst meeting with its CEO on 6 July. The CEO highlighted HDE’s

Date Established 29-Apr-2026

competence in high-voltage transformers, distribution equipment, and rotating business,

Investment Opinion C-1-7

which reaffirmed our positive view on the company.