LS Electric 2Q results - beat on operating margin and new orders. FY26 guidance revised up

研报英文原文证据摘录

LS Electric 2Q results - beat on operating margin and new orders. FY26 guidance revised up

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

23 July 2026

LS Electric Neutral

010120.KS, 010120 KS

2Q results - beat on operating margin and new orders; Price (23 Jul 26):W221,500

FY26 guidance revised up Price Target (Jun-27):W200,000

LS Electric’s shares climbed more than 15% (KOSPI: +4%) following stronger- Power Equipment and Utilities

ACthan-expected results (operating profit >5% ahead of consensus). The company Stephen Tsui, CFA

also raised its guidance for revenue, operating profit, and FY26 new orders. The (852) 2800-8592

key positive was the switchgear business serving SOFC solution providers and stephen.tsui@jpmorgan.com

data centers, where new orders reached KRW 1 trillion in 2Q. High-voltage Vento Suen

transformer orders also remained strong (Table 3LSElectricOrderDetails), supported by robust demand (852) 2800-8546

from both renewables and co-located data centers. Management also plans to vento.suen@jpmorgan.com

invest KRW 200bn to add high-/low-voltage power equipment capacity in Korea, Alan Hon

which it estimates could generate more than KRW 2 trillion of revenue from (852) 2800-8573

alan.hon@jpmorgan.com

2029E. Overall, the results were solid and highlight the company’s ability to J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

capture new orders amid behind-the-meter data center trends. However, we believe Morgan Broking (Hong Kong) Limited

today’s >15% rally already reflects the results beat. With its valuation still rich at

>40x 2027E P/E (vs. peers at <25x), we maintain a Neutral rating.

• 2Q26 operating profit climbed 64% yoy to KRW 179bn, 7%/11% ahead of

JPMe and consensus. Revenue grew by 32% (4% ahead of consensus) to KRW