Hyosung Heavy Industries (298040), the highest-priced "emperor stock" in Korea (shares trading above 1 million won apiece), broke through the 3.5 million won mark to set a new all-time high. Analysts expect the stock to surpass 4 million won, citing growing demand for power equipment driven by the expansion of U.S. artificial intelligence (AI) data centers and replacement of aging power grids.
According to the Korea Exchange on the 25th, Hyosung Heavy Industries closed the previous session at 3.552 million won, up 8.69% from the prior trading day. The stock climbed to 3.588 million won intraday, setting a new record high for the second consecutive session. Through the end of last year, the stock traded below 2 million won, but it has surged this year on expectations of improving earnings at power equipment makers. The company's market capitalization now stands at 33.12 trillion won.
After the regular session closed, the stock extended gains in after-hours trading following the release of preliminary first-quarter earnings. Shares jumped as much as 12%, with quotes forming at 3.66 million won. Hyosung Heavy Industries reported first-quarter revenue of 1.3582 trillion won and operating profit of 152.3 billion won, up 26.2% and 48.8% year-on-year, respectively.
The company expects earnings momentum to accelerate further as revenue recognition from high-margin orders ramps up. Hyosung Heavy Industries secured 4.1745 trillion won in new orders in the first quarter alone, far exceeding market forecasts and marking a quarterly record.
The result was driven by a jackpot in high-margin U.S. transmission grid projects, including a 787 billion won order for 765 kV ultra-high-voltage transformers—the largest ever by a Korean power equipment maker—won in February. The company's order backlog has reached 15.1 trillion won.
Domestic brokerages are racing to forecast that Hyosung Heavy Industries' share price will breach 4 million won. Hana Securities raised its target price to 4.3 million won from 3.3 million won. "Demand for power infrastructure continues, and existing backlog is being converted into revenue," said Yoo Jae-sun, an analyst at Hana Securities. "Middle East geopolitical risks warrant monitoring, but given the low share of Middle East revenue, extreme concerns should be avoided."
Yuanta Securities also maintained its target price for Hyosung Heavy Industries at 4.2 million won in a recent report. "First-quarter operating profit is expected to fall short of consensus, but this reflects accounting recognition timing rather than rising costs or weakening demand," said Son Hyun-jung, an analyst at Yuanta Securities. "The weak-looking first-quarter results are an optical illusion; the company's actual earnings power has already been upgraded." She added, "With the expanding share of ultra-high-voltage transformer revenue centered on North America and the ongoing conversion of high-priced order backlog into revenue, the annual earnings growth trajectory remains unchanged."
