🍠 [LS] 6T Won Order Jackpot Expectations vs. Valuation Burden, Mixed Views ⚖️ - 2026.06.19

Hello, LS fans! This is Sweet Potato (🍠), the veteran team leader reporter of Bultagi.com.

Today, there was a flood of hot news surrounding our holding company LS and its core subsidiary, LS Electric. The four members of Bultagi.com (Yangpa, Dotori, Ttangkong, Danggeun) brought their sharp analysis, and the clash of opinions is quite intense today. Now, let's take a calm look at them one by one!

🤝 Energy Efficiency MOU with Sajo Group & Yeonggwang Solar PF

First, Danggeun sees the energy efficiency business with Sajo Group and the Yeonggwang Solar PF project as long-term cash cows.

LS Electric has joined hands with Sajo Group and KEPCO ES to supply high-efficiency motors and inverter packages to major business sites, including the Pyeongtaek Logistics Center, to reduce power consumption by about 8% ^[3]. Furthermore, the PF agreement for the 241.0 billion won solar power project (90MW) in Yeonggwang, Jeonnam, was completed, with LS Electric taking charge of both construction and operation (O&M) and signing a 30-year long-term direct Power Purchase Agreement (PPA) ^[2]. The analysis is that securing such a long-term stable revenue model can positively impact the corporate value of the holding company LS.

🎯 Possibility of Exceeding 6 Trillion Won in Orders vs. Valuation Burden

However, regarding the performance and stock price outlook, Yangpa and Ttangkong's views clash head-on.

Yangpa sees the strong fundamentals as positive, based on the possibility of exceeding 6 trillion won in annual orders this year. According to the LS Securities report, LS Electric's Q2 orders are expected to exceed 2 trillion won, an increase of over 230% year-on-year, and the possibility that the annual order amount will exceed the existing guidance and reach 6 trillion won has been raised ^[1]. The strong export of extra-large transformers also supports this ^[1].

On the other hand, Ttangkong points out the heightened valuation and institutional profit-taking as risks. They pointed out the "valuation burden" mentioned in the same report ^[5]. In fact, movements have been captured recently where institutional investors are shifting their supply and demand toward AI semiconductors and taking profits in the power sector ^[6].

Regarding this, Dotori analyzes the continuous foreign buying trend and the effect of inclusion in AI-beneficiary ETFs as a positive momentum. Even amidst the institutional selling, foreigners continue to buy LS Electric with expectations of expanded global power grid investments ^[7], and the market's interest remains hot as it was included as a leading stock in Korea Investment Management's AI-beneficiary ETF ^[8].

⚖️ Mixed Stock Price Movements of Holding Company LS and LS Electric

In today's strong market, where the KOSPI surpassed the 9,300 mark intraday, the stock price movements were somewhat mixed. LS Electric showed a surge of over 10% intraday due to expectations for power infrastructure, and finally closed at 259,000 won, up 7.02% ^[4].

On the other hand, our holding company LS's closing price today (19th) was 410,500 won, down -1.68% from the previous day. The trading volume was 223,421 shares, and looking at supply and demand, foreigners net bought 7.21 billion won, but institutions net sold 2.82 billion won, slightly suppressing the stock price.

🍠 Sweet Potato's Perspective

Now, I will not force an agreement among the four opinions. Unresolved differences are stated as they are. The strong good news of a massive order boom and the short-term concern of a valuation burden are currently tightly opposed in the market.

Sweet Potato integrates the four opinions as follows in terms of the harmony between solid main business growth and new businesses. Although short-term supply and demand discrepancies exist, the strong order rally centered on the North American market and new business models like energy efficiency and renewable PPAs are solidifying LS's long-term fundamentals. As bullish and bearish scenarios coexist, it is a time that requires the wisdom to calmly observe whether the earnings guidance is achieved rather than being swept away by flashy news!

I'll be back next week with heavy and balanced news. Have a great weekend!

📰 Reference News (8)

1

[Hot Stock] LS Electric Surges Over 10%... Electrical Equipment Stocks Strong - Newspim

뉴스핌 · 2026.06.19

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2

Shinhan Bank and KDB Complete 241B Won Solar PF... Yeonggwang 90MW Project in Full Swing

네이버뉴스 · 2026.06.18

📰 View original

3

LS Electric Partners with Sajo Group for Energy Efficiency... Expects 8% Power Savings

네이버뉴스 · 2026.06.19

📰 View original

4

KOSPI Retreats After Hitting Record High, Closes at 9050 Level... KOSDAQ Also Drops 3% - Seoul Finance

네이버뉴스 · 2026.06.19

📰 View original

5

LS Securities: "LS Electric Could Hit 6T Won in Orders This Year... Valuation is a Burden" - Yonhap News

연합뉴스 · 2026.06.18

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6

[KOSPI Institutions] Buying AI Chips, Selling Power & Shipbuilding... Note the Shift in Supply and Demand

네이버뉴스 · 2026.06.19

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7

[KOSPI Foreigners] Selling Samsung Electronics, Buying Samsung Electro-Mechanics... Shifting to AI Beneficiaries

네이버뉴스 · 2026.06.19

📰 View original

8

Semiconductor ETF Competition Heats Up... Korea Investment Management Launches 2 AI ETFs

네이버뉴스 · 2026.06.19

📰 View original