SOUTH KOREA FIRST TO MARKET

研报英文原文证据摘录

SOUTH KOREA FIRST TO MARKET

Asia Pacific Equity Research

South Korea First to Market 25 June 2026

Top Stories

LS Electric (Stephen Tsui, CFA) (010120 KS, N)

Model update to reflect latest order wins. Stay Neutral on rich valuation

We have updated our model for LS Electric to reflect strong order wins from US data centers and revised up our 26-28E

earnings forecasts by 3-9%. Order wins during the 2Q span multiple products, including HV transformers (345kV), distribution

solutions (e.g. with Bloom Energy [BE.US, OW, covered by Mark Strouse]), switchgear, circuit breakers and other products.

These showcase the company’s breadth of product offering to AIDCs. On the back of strong demand for behind-the-meter

power generation and AIDC capacity growth (see latest note on CSP capex forecast by our global team), we believe LS Electric

is well-positioned to increase its market share in data centers and protect its share against Chinese competitors given its track

record and breadth of products. That said, trading at 49x 2027E P/E (>70% premium over peers), the risk/reward trade-off

appears fair, we hence maintain a Neutral rating on the name.

Korea Equity Strategy (Mixo Das)

Non-discretionary flows a headwind, but fundamental upside and boost to national wealth still in

play

We remain directionally bullish on Korea equities despite ongoing forced foreign selling and elevated volatility (both of which

are likely to persist). This is driven by a combination of our constructive view on AI and resultant hardware earnings

(punctuated at times by narrative vulnerabilities - see below), added earnings tailwinds from growth in a variety of (AI-

adjacent and other) Industrials, potential wealth-effect and NIM boost to Financials, and ongoing (if