📚 This Week's LS Industry Analysis: AI Power Infrastructure and ASEAN Market Strategy - 2026.07.15

Hi, fans. I'm Dotori, in charge of industry analysis.

I'll provide a systematic analysis of the structural changes and latest trends in the industry surrounding LS this week.

🔗 Structural Transition to AI Power Infrastructure

From a macro perspective, the increase in power demand following the growth of the AI industry is becoming prominent ^[1]. Consequently, LS ELECTRIC is transforming its business model from a traditional power equipment manufacturer into an AI power infrastructure solution company ^[1]. Recently, it attended a meeting hosted by the National AI Strategy Committee as a representative power equipment company to discuss tax support and deregulation ^[4].

Furthermore, in collaboration with the global semiconductor company Infineon, they plan to jointly develop DC power solutions based on next-generation power semiconductors ^[3]. The strategy to secure leadership in the future market by acquiring technologies for Semiconductor Transformers (SST) and circuit breakers—core components for AI data centers—appears effective ^[3].

⚙️ ASEAN Market Expansion and Differential Value Chain Benefits

On a micro level, the strategy to target the Southeast Asian market is noteworthy. LS ELECTRIC participated in 'ELECS VIETNAM 2026' held in Ho Chi Minh City, Vietnam ^[2]. By showcasing High Voltage Direct Current (HVDC) and high-efficiency DC supply systems for AI data centers, they expect consultation results worth approximately 250 million USD ^[2]. As a result, the expansion of market share in line with the power demand of the 400 million-strong ASEAN population is expected to accelerate ^[9].

Within this big picture of the power supercycle, we can categorize the differential benefits across the value chain into 1st, 2nd, and 3rd tiers. The 1st tier is undoubtedly LS ELECTRIC, which is leading the AI power infrastructure solutions and ASEAN expansion ^[1]. The 2nd tier is LS Cable & System, which possesses the technology to produce high-voltage underground cables. This technology, essential for connecting substations and transmission lines, will serve as a positive factor for future order growth ^[5]. The 3rd tier can be seen as the other power equipment and material/component value chains that support these efforts.

📚 Fundamental and Market Trend Check

From a financial perspective, LS ELECTRIC's second-quarter operating profit is expected to grow by 52% year-on-year, achieving a triple crown of orders, revenue, and profit ^[6]. Along with this, it disclosed the disposal of treasury stock worth approximately 6.1 billion KRW for the purpose of compensating 3,252 employees ^[7]. In terms of ESG management, it also announced a plan to respond step-by-step to global carbon regulations with the goal of achieving carbon neutrality by 2040 ^[8].

Looking at recent stock price trends, as of July 15, 2026, LS's closing price was 305,000 KRW, up 4.27% from the previous day. Trading volume reached 140,966 shares, with foreigners net purchasing 6.9 billion KRW and institutions net selling 7.74 billion KRW.

Therefore, Dotori believes that securing these technologies and pioneering overseas markets will become the core drivers leading the structural growth of LS.

📰 Reference News (9)

2

Korea Electrical Manufacturers Association Opens ‘ELECS VIETNAM 2026’… Expects $250 Million in Consultation Results

네이버뉴스 · 2026.07.15

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3

AI Data Center Game Changer 'Semiconductor Transformer'... Korea-China Competition Intensifies for Leadership

네이버뉴스 · 2026.07.15

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4

National AI Strategy Committee Initiates Cultivation of AIDC Industrial Ecosystem... Discusses Tax Support and Deregulation - TechWorld

네이버뉴스 · 2026.07.15

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5

The Bottleneck Behind AI Territory Expansion... "The Real Value is Power Rights, Not Servers" - Global Economic

네이버뉴스 · 2026.07.15

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6

“Q2 Operating Profit Skyrockets 52%... LS ELECTRIC Achieves Triple Crown of Orders, Revenue, and Profit”

네이버뉴스 · 2026.07.14

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7

LS ELECTRIC Disposes of 6.1 Billion KRW in Treasury Stock... "For Compensation of 3,252 Employees"

네이버뉴스 · 2026.07.15

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8

LS ELECTRIC Responds Step-by-Step to Unavoidable Global Carbon Regulations... Goal of Carbon Neutrality by 2040 - New Daily

뉴데일리 · 2026.07.15

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9

LS ELECTRIC,

네이버뉴스 · 2026.07.15

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