CEO Meeting Takeaways + Q&A Summary: We provide key takeaways from our Cheongju Distribution Campus visit and CEO meeting

研报英文原文证据摘录

CEO Meeting Takeaways + Q&A Summary: We provide key takeaways from our Cheongju Distribution Campus visit and CEO meeting

IdeaM

Management Q&A Summary

1. Order outlook and 2026 guidance

Q: What drove the increase in 2026 order guidance? Was this due to opening

additional production slots or a change in capacity assumptions?

• The upward revision was primarily driven by stronger-than-expected demand for

765kV transformers.

• Capacity expansion had already been planned several years ago, but management

had initially assumed a gradual production ramp.

• Confidence has increased as workforce availability has improved faster than

expected.

• Additional demand is also emerging from on-site generation projects alongside

conventional utility demand.

• Multiple positive factors have materialized simultaneously, allowing the company

to raise guidance.

Q: Is the recently announced W1.1tr order included in the backlog immediately?

• Yes, the contract is a data center-related project.

• Approximately 50% consists of transformers and 50% of distribution equipment.

• Management continues to hold discussions with multiple North American

hyperscale customers regarding future projects.

• Revenue recognition will be weighted more toward 2027-28 rather than 2026.

Q: Is the revised order guidance still conservative?

• Management believes additional upside remains possible, particularly if 765kV

demand continues to strengthen.

• Data center projects continue to offer attractive profitability, although the

company declined to provide specific margin guidance.

2. Transformer market and UHV demand

Q: How is the US UHV transformer market evolving?

• Demand for 765kV transformers remains exceptionally strong.

• Only a limited number of global manufacturers can produce these products.