🔥 LS, Taking a Breather Between Grid Expansion and Copper Prices - 2026.09.11

Now, now, when you peel back the layers, LS’s key issue is how quickly its power grid business is expanding and how far in advance its share price has priced in earnings. Copper prices hit a new all-time high, but LS shares showed signs of taking a breather, while securities firms are focusing on second-half earnings ^[3]. The fundamentals are hot, but the stock is pausing for breath—a curious market, isn’t it? ☕

Renewable Energy Cooperation Goes Beyond a Simple Agreement

LS Electric has agreed with Korea Midland Power to jointly develop domestic renewable energy projects, starting with onshore wind power and extending to solar power and battery energy storage systems. The cooperation covers everything from project discovery and investment and financing to engineering, procurement, construction, and power plant-related operations ^[1].

The important point is that this is not merely an agreement to put their names together; it is a structure combining power plant planning and investment with engineering, procurement, construction, and related technologies. However, the agreement has not immediately translated into earnings figures. The next question is how quickly actual project discovery, investment, and orders will follow. LS is reaching beyond cables into the front end of the power and energy businesses. Looks like cables are no longer just about cables—the business line has literally grown longer.

Domestic HVDC Creates a New Link to the Power Grid

Korea Electric Power Corporation is pursuing the development of core technologies for high-capacity voltage-source HVDC and the localization of related equipment, with four domestic companies, including LS Electric, participating in the converter transformer sector ^[2]. The equipment developed is also expected to lead to demonstrations on the actual power grid and eventual commercialization for export projects ^[2].

From LS’s perspective, the key point is that power equipment technology could be connected to real-world demonstrations within the broader trend of power grid investment. Of course, development, demonstration, and commercialization stages still lie ahead. So it is more accurate to view this news as the process of expanding the market opening for power equipment businesses, rather than confirmed earnings. Aggressive investors would probably react first to this kind of macro tailwind, but when you peel back the layers, it is also important to check each stage.

Why the Copper Tailwind and Stock Pause Show Different Temperatures

On September 11, LS closed at ₩319,000, moving -0.78% from the previous day, with trading volume at 86,621. Earlier, after recording ₩330,000, +9.09% on September 9, it fell to ₩321,500, -2.58% on September 10, and volatility continued on September 11. Looking at the available market data together with the news flow, this appears less like the business catalysts have disappeared and more like the stock is moderating its pace as expectations are priced in.

The all-time high in copper prices is clearly a point of interest for a market that considers LS Cable & System and its materials business together. Still, it would be too simplistic to conclude that copper prices themselves will push every affiliate’s earnings in the same direction. For the second half, expansion of LS Electric’s distribution and transmission portfolio and increased winding demand at LS I&D have been cited as earnings improvement factors ^[3]. Copper may move in its own twists and turns, but earnings still have to be calculated separately for each business.

Securities Firms’ Outlook Is Bullish, but Still Only an Outlook

Newspim reported an analysis that LS could continue posting record-level earnings in the second half, supported by the boom in cables and power equipment ^[4]. However, this is not an earnings announcement confirmed by the company; it is an analysis reported by the media outlet. Sentences describing possibilities and confirmed figures should be viewed with some space between them.

SK Securities reportedly lowered its target price for LS to reflect the share price decline, while maintaining its investment opinion ^[5]. At the same time, it presented an outlook for continued earnings improvement in the second half ^[5], meaning that the direction of the outlook and the change in valuation were included together in one article. When you peel back the layers, LS’s bullish scenario is becoming clear along three tracks: the boom in cables and power equipment, joint renewable energy development, and HVDC localization. Still, the timing of when that scenario will appear in actual earnings, the speed at which agreements turn into orders, and the temperature gap between copper prices and the share price remain variables. The next point to watch will be how much demand for power equipment and cables is actually confirmed in the second-half earnings figures. 📈

📰 Reference News (5)

1

LS Electric and Korea Midland Power Form Renewable Energy Alliance—From Wind Power to Solar and BESS

네이버뉴스 · 2026.09.10

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2

KEPCO Accelerates Localization of High-Capacity Voltage-Source HVDC

네이버뉴스 · 2026.09.10

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3

Pungsan and LS Shares Take a Breather Despite Copper’s Record-Breaking Run—Securities Firms Say to Watch Second-Half Earnings

네이버뉴스 · 2026.09.11

📰 View original

4

[Morning Report] LS to Post Record-Level Second-Half Earnings on Cable and Power Equipment Boom…56% NAV Discount - Newspim

뉴스핌 · 2026.09.10

📰 View original

5

SK Securities: “LS Target Price Lowered to Reflect Share Price Decline; Continued Second-Half Earnings Improvement Expected”

네이버뉴스 · 2026.09.11

📰 View original