🍠 LS Holding Company: Results Are Red-Hot, but Price-Target Views Are Divided - 2026.10.28

Hi, it’s Goguma. I’ll calmly take stock of the situation again today. 🍠 The story of holding company LS ultimately starts with its subsidiary LS Electric, and once again, that’s where the focus is. Preliminary third-quarter revenue came in at 1,877,800,000,000 KRW, up 54.4% year over year, while operating profit reached 233,500,000,000 KRW, up 131.7% ^[1]. It was a record high for a quarter, and the company also maintained its streak of 100 consecutive quarters of operating profit, dating back to the fourth quarter of 2001. Just looking at the numbers is enough to make you sit up and take notice.

📊 Where is the project backlog building up?

This month, three power equipment supply contracts for U.S. data centers were announced in succession, totaling about 535,000,000,000 KRW ^[2]. The article noted that the accumulated project backlog has reached 7,000,000,000,000 KRW. The mention of big tech companies building power plants themselves suggests that AI data center construction is helping drive this trend. Here’s a question to consider: if the pace of data center construction translates directly into orders for power equipment, will news of those orders flow straight through to the share price as well?

⚖️ From transmission to distribution, let’s look at the technology direction too

LS Electric announced plans to expand its HVDC (high-voltage direct current) transmission business, targeting the energy expressway ^[3]. Asia Economy reported that it also unveiled a next-generation power grid connecting transmission and distribution with direct current ^[4]. Think of it like a highway: first laying down the main lanes, then connecting them to neighborhood streets. This shows where the subsidiary’s technology is headed, but the article doesn’t say this will immediately translate into results. That gap remains open for now.

🎯 Price target cut, views diverge

Researcher Jang at Meritz Securities said the firm had lowered its target price for LS ^[5]. The reasons cited were uncertainty around investment allocation among affiliates and the possibility of duplicate listings. But this is the securities firm’s view, not a decision confirmed by the company. Looking at the share price, it moved from a closing price of ₩215,500 on October 20 to ₩212,500 on the 23rd, then rose to ₩222,500 on the 28th. The change on the 28th was +3.01%. The tension in this story lies in the fact that strong earnings news and the securities firm’s adjusted view are pointing in different directions. I’ll sum up the four perspectives like this: no forced consensus; where interpretations differ, I’ll leave them that way.

🍠 Remaining variables and questions

To sum up, results and orders are strong, and the technology direction is clear. On the other hand, the securities firm’s price-target adjustment is a signal that can be read differently. My take is that bullish and bearish scenarios coexist. Two questions remain: how much the data center projects will flow through the subsidiary’s results into the value of the holding company, and how uncertainty around investment allocation among affiliates and duplicate listings will be resolved. The full picture will emerge once these two pieces of the puzzle fall into place. 🤝

📰 Reference News (5)

1

K-Electric on the Offensive… HD Hyundai Earns 1.2 Trillion, LS Posts 100 Consecutive Quarters of Profit

네이버뉴스 · 2026.10.28

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2

U.S. Big Tech Builds Power Plants Too… LS Electric Amasses 7 Trillion in Projects

네이버뉴스 · 2026.10.28

📰 View original

3

LS Electric Expands HVDC Business Targeting the Energy Expressway - The Elec

디일렉 · 2026.10.28

📰 View original

5

Meritz Securities: “LS Price Target Cut; Uncertainty Remains Around Affiliate Investment Allocation and Duplicate Listings”

네이버뉴스 · 2026.10.28

📰 View original