🏭 LS Electric: EHV Exports Surpass 1 Trillion Won and DC Factory Innovation - 2026.07.19

LS Electric, a key subsidiary of the LS Group, has numerically proven that it stands at the peak of the power infrastructure supercycle. In particular, while three domestic companies maintain a monopoly in the ultra-high voltage transformer sector to meet surging demand, LS Electric achieved a record-breaking result with its first-half export sales surpassing 1 trillion won for the first time in history ^[1]. This suggests that beyond mere external growth, the technological superiority of K-EHV transformers in the global market is translating into a price premium.

🔗 Technological Innovation and Quality Competitiveness

Technological differentiation is also clear. LS Electric constructed the world's first 100% DC direct current dedicated factory in Cheonan, Chungnam, improving energy efficiency by over 10% ^[7]. This facility is attracting significant interest from global big tech companies, including those in the US, and is evaluated as a strategic asset proactively responding to changes in power infrastructure demand centered on data centers. Additionally, at the Busan EHV Transformer Plant No. 2, skilled veterans manage the quality of core processes such as core assembly through manual work, meaning that sophisticated technology difficult to replace with automated robots serves as a competitive advantage ^[2].

⚙️ Performance Outlook and Brokerage Ratings

Yuanta Securities forecasts that LS Electric will continue its performance growth trend based on expanded power infrastructure investment and analyzed that Q2 results will exceed market expectations ^[3]. In particular, profitability improvements are expected to accelerate as external growth centered on power infrastructure and product mix improvements proceed simultaneously. Mirae Asset Securities also selected LS Electric as a recommended stock for the third week of July, emphasizing that margin expansion through increased new orders and improved profitability will fully materialize ^[4]. Amid expectations that the distribution sector premium due to the power grid expansion cycle and broad-based demand growth will have a positive impact, it is also noteworthy that the company is benefiting from the era of replacing aging power grids and that orders for distribution boards after transmission are continuing ^[8].

📚 Corporate Governance and Incentive Strengthening

Signs of change are also confirmed on the management side. LS Electric announced that it will issue Restricted Stock Units (RSUs) and treasury shares to all employees, including overseas staff, to achieve 'Vision 2030' and motivate members ^[5]. This is an expansion of the performance compensation system to strengthen a win-win culture between workers and management, and the change in the subsidiary's incentive policy is notable news from the perspective of LS Group's corporate governance and shareholder returns ^[6]. Such incentive strengthening can be interpreted as an investment in human capital for maintaining long-term technological innovation and quality competitiveness.

Acorn believes that LS Electric's breakthrough in EHV transformer exports and DC factory innovation are not merely one-time positive catalysts but are establishing themselves as structural growth drivers. In particular, there is a high possibility that margin expansion will fully materialize as technological differentiation and incentive strengthening create synergy.

🏭 Value Chain Differential Benefits

1st Priority: LS Electric (EHV transformer exports surpass 1 trillion won, DC factory innovation, margin expansion) 2nd Priority: LS Cable & System (Increased demand for EHV cables, expanded power infrastructure investment) 3rd Priority: LS MnM (Stabilization of electrical copper prices, increased material demand)

📰 Reference News (6)

2

"Can't Be Made Without Veterans"... Transformer and Cable Quality

네이버뉴스 · 2026.07.17

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3

LS Electric Levels Up Performance Amid Power Infrastructure Boom... Order Momentum Accelerates

네이버뉴스 · 2026.07.19

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4

LS ELECTRIC: Margin Expansion Fully Materializes Riding the Tailwind of Data Centers

네이버뉴스 · 2026.07.17

📰 View original

5

LS Electric to Issue RSUs and Treasury Shares to All Employees Including Overseas... "Expansion of Performance Compensation System"

네이버뉴스 · 2026.07.18

📰 View original

6

[Industry News Briefing] LG PuriCare Ice Water Purifier Gets Smarter with AI

네이버뉴스 · 2026.07.16

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📺 Reference Videos (2)

7

YouTube

A 130-Year Trend Reversed. Korea Opens the World's First 100% DC Direct Current Factory. Global Big Tech Companies Line Up to See It

▶간단경제한스푼·2026.07.18

8

YouTube

[Eye-Catcher] Wonik IPS vs Hanwha Systems vs LS ELECTRIC vs Hanwha Engine, What's the Strategy? / Money Today Broadcasting (Stock Market, Securities)

▶MTN 머니투데이방송·2026.07.17