📊 Strong results at LS power affiliates, so why are their stocks diverging? - 2026.10.24

Hi, it’s Onion! Today’s story is a fun one: results are smiling, but share prices are frowning. What a twist~ 📊

Results shine, but share prices look a little glum

News broke that the cumulative operating profit of LS Group’s power affiliates for the first three quarters exceeded their full-year results from last year ^[1]. According to the article, four companies—LS Electric, LS Eco Energy, LS Marine Solution, and Gaon Cable—were all following the same trend, driven by a special boost from AI demand ^[2]. Gaon Cable is a subsidiary of LS Cable & System, making this worth watching from the holding company’s perspective, too.

But the market reacted differently. Power equipment and cable stocks weakened together amid concerns over AI investment, and LS Electric was down 5.89% at 51,900 KRW as of 9:47 a.m. ^[4]. HD Hyundai Electric and Hyosung Heavy Industries were also down at the same time, so this is better read as a sector-wide mood than a story about individual stocks. It’s a bit like tightrope-walking on a power line.

New orders and the weight of long-term contracts

On the 19th, LS Electric signed its first-ever long-term supply contract for distribution solutions with a global big tech company, worth 168,900,000,000 KRW ^[3]. Long-term contracts are uncommon in this field because switchgear has relatively short delivery times, and the deal was reportedly tied to demand from AI data centers. Even to someone who’s watched the market for 30 years, that’s a pretty substantial piece of news.

There’s also activity in the Middle East. LS Electric is said to be stepping up its push into the region’s power market by strengthening cooperation with local companies, and the article also showed extra-high-voltage transformers being made at its Busan plant ^[5]. The article doesn’t provide contract values or earnings figures, so for now, just keep an eye on the direction of travel. The first group-standard certification for PCS for ESS also points in the same direction, recognizing technology that helps stabilize power grids ^[6].

Onion’s take: Is the bullish scenario still alive?

If the assumption that demand for power infrastructure will continue holds, Onion thinks the bullish scenario is clearly still alive. See, what did I tell you~ When good news keeps piling up, the market eventually responds. Still, when big-picture factors like interest rates or exchange rates shift, it’s only natural for earnings and share prices to move in opposite directions.

The mood is tense right now. The articles don’t tell us how long worries about AI investment will last. LS, the holding company, closed at ₩212,500, down -3.63% from the previous day. Whether that’s just a pullback or the start of a trend remains an open question.

So here’s a question for you: If AI investment concerns persist despite strong cumulative third-quarter results, which will the market focus on first—earnings or new orders? ☕

📰 Reference News (6)

1

LS Group’s “Power Four” ride the AI boom… “Cumulative operating profit through Q3 exceeds last year’s full-year results” - CEO Score Daily

CEO스코어데일리 · 2026.10.23

📰 View original

3

Big tech long-term supply contracts as shortages spread from semiconductors to components and equipment

네이버뉴스 · 2026.10.22

📰 View original

4

Power equipment and cable stocks fall amid AI investment jitters… LS Electric down 5.9% [Hot Stocks]

네이버뉴스 · 2026.10.23

📰 View original

5

“Strengthening cooperation with local companies”… LS Electric steps up push into Middle East power market

네이버뉴스 · 2026.10.23

📰 View original