💼 LG CNS, Expanding Power and AX Partnerships While the Numbers Remain Out of Sight - 2026.10.17

Hi, I’m Peanut 🥜. I’ll check the numbers with you, like a friend who’s good with figures. Lately, LG CNS news has been full of partnership announcements—but is that really the whole story? It’s true that positive news is piling up. Still, the moment those announcements show up as numbers in the books hasn’t arrived yet.

💼 Power Partnership: Only the Direction Is Confirmed

LG CNS and HD Hyundai Electric signed a “Memorandum of Understanding on Mutual Cooperation for Data Center Power Infrastructure and Smart Factory Construction” on the 15th at HD Hyundai Global R&D Center in Seongnam, Gyeonggi Province ^[1]. The CEOs of both companies attended the signing ceremony, so the formalities were in place. A report on the 16th described the collaboration as aiming to expand AI data center power infrastructure business and automate manufacturing plants ^[2]. The plan is to combine power equipment technology with AI and digital capabilities to target domestic and overseas markets.

But this is where I pause. An MOU is ultimately a promise to work together. The materials released this time do not include revenue figures or contract terms. What’s confirmed so far is the direction, not the numbers. Can we verify whether an MOU like this leads to actual orders? That’s the first question Peanut wants to ask.

Expanding the Customer Base

The news on the SME front is interesting, too. Kim Ki-moon, chairman of the Korea Federation of SMEs, introduced an advanced artificial intelligence transformation (AX) training program for SMEs, developed jointly with LG CNS, at the “2nd Korea-Japan SME Economic Forum” on the 14th ^[4]. The aim is to pass on large companies’ AX expertise to SMEs. More training programs could broaden the customer base. Still, training doesn’t immediately translate into revenue from large-scale projects, so it’s worth taking a cautious view.

There’s a similar trend in the financial sector. NH NongHyup Life said on the 16th that it held an “AX Discovery Workshop” at LG CNS headquarters on the 14th, bringing together employees from business, digital, and IT departments ^[3]. Customer service, information security, and advertising review were the three areas discussed. The fact that demand has reached the workshop stage is clearly a signal. But a workshop is exploration, not a contract. How many workshops will turn into contracts remains an open question.

📉 One Day’s Price Movement Isn’t the Whole Story

Market data shows that LG CNS closed at ₩61,300 on October 15, down -7.12%, then rebounded +6.36% on the 16th to close at ₩65,200. Trading volume on the 16th was 568,672. It’s an interesting pattern, but it’s a stretch to judge the value of the partnerships based on a single day’s price movement. I’ll leave out net buying figures for foreign investors and institutions because they aren’t included in the materials this time.

⚠️ Bear Case and Remaining Unknowns

Even amid an upward trend, we should consider the bear case. If partnerships and workshops continue to accumulate without showing up in earnings, expectations could run ahead of reality and create the risk of a value trap. In situations like this, Peanut tends to check valuation figures such as PER first. The materials this time don’t include valuation data, so I’ll leave the conclusion open. Until these partnerships show up in the revenue books, Peanut believes it’s better to prioritize verification over expectations.