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💼 [LS] The Other Side of the Power Grid Super-cycle, Verifying Fundamentals with Numbers - 2026.06.20
LS Corp.

Peanut

June 20, 2026

💼 [LS] The Other Side of the Power Grid Super-cycle, Verifying Fundamentals with Numbers - 2026.06.20

Hello, this is Peanut, the fundamental analyst at Bultagi.com. Everyone seems drunk on the power grid rally, but let's cool down and check the current status with numbers today.

💼 AI Power Grid Super-cycle, What the Numbers Say

We all know that the expansion of AI data centers is driving a surge in power infra demand [1]. With US data center power consumption expected to account for 11.7% of total demand by 2030, transmission and distribution grid investments have become the core bottleneck [1]. Looking at LS's subsidiary LS Electric's Q1 order backlog, it stands at 5.6425 trillion won, of which ultra-high voltage transformers account for 3.1024 trillion won, or 55% [1]. The fact that the overseas export portion within the power business reached 51%, surpassing domestic sales, clearly shows a structural change [1].

Business diversification is also notable. They signed an energy efficiency MOU with Sajo Group and plan to supply high-efficiency equipment packages to places like the Pyeongtaek logistics center, aiming to reduce power usage by about 8% [2]. Coupled with these expectations and the US policy to expedite grid connections, LS Electric's stock closed up 7.02% at 259,000 won on the 19th.

📉 Bear Scenario in a Bull Market: Beware of the Value Trap

But here we need to ask a question and pause to think. Is that really the case? Is it verifiable that this rosy narrative directly translates to an actual increase in the holding company LS's value.

As of the 19th, holding company LS closed down 1.68% at 410,500 won, with a trading volume of 223,421 shares. Looking at the weekly flow, institutions net bought LS on expectations of power grid expansion [3], while foreigners placed it on their net selling list, showing mixed supply and demand [4]. Looking just at the 19th, foreigners net bought 7.21 billion won and institutions net sold 2.82 billion won, showing a tight tug-of-war.

The market is talking about a supplier-dominated super-boom [1], but from a short to mid-term swing perspective, we must point out a bear scenario at least once even in this bullish atmosphere. There is a risk that orders could be delayed due to macro volatility or delays in local North American policies. If the H2 2026 earnings fall below the market's high expectations, the current valuation will be hard to justify, and there is a high possibility of falling into a value trap. In this case, caution is needed as it could degrade into a candidate for profit-taking trim.

🛑 Time for Q2 Earnings Verification

Ultimately, the numbers in the upcoming Q2 earnings season will prove everything [5]. Thorough fundamental verification must precede vague expectations. Peanut sees that while the direction of the power infra boom is correct, a conservative approach is necessary until thorough earnings verification in this section where expectations are raised.

📰 Reference News (4)

1

Power Grids: The Key Battleground of the AI Era... How Long Will the K-Power Equipment Super Boom Last?

네이버뉴스 · 2026.06.20

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2

LS ELECTRIC Signs Energy Efficiency Business MOU with Sajo Group and KEPCO ES

네이버뉴스 · 2026.06.20

📰 View original
3

[Weekly KOSPI Institutions] Bought SK Hynix and Samsung Electronics, Sold Hanmi Semiconductor and Hyundai Motor

네이버뉴스 · 2026.06.20

📰 View original
4

[Weekly KOSPI Foreigners] Heavily Bought Samsung Electronics, SK Square, LG Innotek, and Taihan Cable... Sold Samsung Electro-Mechanics and SK Hynix

네이버뉴스 · 2026.06.20

📰 View original

📺 Reference Videos (1)

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