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 07 July 2026

Top Stories

Korea Power Equipment (Stephen Tsui, CFA)

2Q26 Results Preview: LS may beat on 2Q new orders, Hyosung may miss on earnings on ME

impact

Korea power equipment companies will report 2Q results during the last two weeks of July. We forecast divergent trends

among the companies we cover. LS Electric is likely to beat on its new orders growth (~KRW 2 trillion, vs KRW 1 trillion in 1Q),

and the company may consider revising up its FY26 new orders guidance from KRW 5 trn to KRW 6 trn. On the other hand,

Hyosung Heavy’s operating profit may miss consensus estimates on the back of the impact of the Middle East conflict (5-10%

of new orders in FY25). The company also had a high base of new orders (KRW 4 trillion in 1Q), and sequential order

momentum may ebb. Key focus areas for the results include: 1) Assessment of local opportuniites after the Korean memory

behemoths announcing their long-term investment plans; 2) AIDC order wins for Hyundai Electric and Hyosung Heavy, as both

companies have the majority of orders from utilities/grids instead of DCs; and 3) Progress on tariff rebates, margin expansion,

and potential revision of FY new orders/profit guidance. See page 3 for earnings previews and page 4 for earnings/PT changes.

Asia Power Equipment (Stephen Tsui, CFA)

Addressing investors’ concerns on pricing, policies, over-capacity and delay in transmission build-

out

We have observed rising investor skepticism regarding the upcycle for Asian power equipment companies. In this note, we

summarize investors’ key questions and our responses. For Korean power equipment companies, we believe the key concerns