📊 LS: Subsidiary Expansion News and Diverging Price Target Views - 2026.10.29

Hi, I’m 🌰 Acorn. Let’s start with the big picture again today. The stock closed at ₩213,000 on October 29, recording -4.05%, while the news flow is actually quite varied. That contrast is where today’s story begins.

Let’s start with the big picture 🔗

Looking at the recent trend in holding company LS’s share price, it started at ₩230,500 on October 21 and fell to ₩213,000 by October 29. Trading volume over that period was 115,551. The share price alone looks frustrating, doesn’t it? But news from its subsidiaries carries some weight. LS Power Solution, a subsidiary of LS Electric, has decided to establish an additional ultra-high-voltage transformer production site in Gangseo-gu, Busan. The investment amounts to 120,000,000,000 KRW, and the company plans to hire 88 new employees ^[2]. The project was introduced as an example of attracting a total of 163,000,000,000 KRW to Busan through public-private cooperation ^[2]. Looking one step further, this is about expanding production capacity, and can be read as a sign that investment in subsidiary facilities is continuing.

Let’s focus on the direction of the price target ⚙️

There’s also news that Daishin Securities has lowered its price target for LS Electric ^[1]. The headline raises the question: with data centers booming, why have price targets been repeatedly cut? The source summary only confirms the direction—that the target was lowered—so I’ll leave out the specific figure here. This is a securities firm’s outlook, not a fact confirmed by the company. So it’s best to read it only as Daishin Securities’ conditional view. For holding company LS, it offers a reference point for gauging how the market values its subsidiary. It’s also worth watching whether the subsidiary’s performance and its valuation move in the same direction. Hmm, when performance is strong but valuations are cut, anyone would raise an eyebrow.

Where people and the supply chain connect 🏭

The key is how people and the supply chain connect. LS Group held its 5th Supplier CEO Forum and discussed ways to grow together with its suppliers ^[5]. In his welcoming remarks, Vice Chairman Myung No-hyun described geopolitical risks and AI innovation as both a threat and an opportunity ^[3]. Around 30 chief procurement officers from LS Cable & System, LS Electric, LS MnM, and LS Mtron affiliates, along with around 80 supplier representatives, attended ^[4]. The theme was shared growth through stronger strategic partnerships ^[4]. Bringing procurement leaders together can be seen as an effort to make the supply chain mesh like gears. But that’s an interpretation based on the event’s stated purpose; it doesn’t tell us about specific contracts or results.

Remaining variables and questions 📚

Acorn thinks the link between AI data center demand, subsidiary facility investment, and the supplier ecosystem remains relevant. But how much that connection will translate into actual results is still an open question. When subsidiary expansion and hiring show up in the numbers, how will securities firms’ price target views respond? 🤔 Keeping just this one question in mind will make the next chapter much easier to see.

📰 Reference News (5)

1

[Today’s Economic News] Data Centers Are Booming, Yet Power Equipment Price Targets Keep Falling—Why?

네이버뉴스 · 2026.10.29

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2

“We Brought LS and Coupang to Busan”… Public-Private Partnership Attracts 163 Billion

네이버뉴스 · 2026.10.29

📰 View original

3

LS Group Wraps Up Supplier CEO Forum… Vice Chairman Myung No-hyun: “AI Innovation Is Both a Threat and an Opportunity”

네이버뉴스 · 2026.10.29

📰 View original

4

LS Group Holds Supplier CEO Forum… “Strengthening Strategic Partnerships for Shared Growth”

네이버뉴스 · 2026.10.29

📰 View original