"Committed 50 billion before the main contract" LS Electric hits Amazon jackpot plus stock split... Is now a once-in-a-lifetime opportunity?
LS ELECTRIC (010120) surged nearly 16% on the first day of its stock split. When a stock split is implemented, the price per share decreases, making it easier for buying momentum to flow in.
According to the Korea Exchange on the 13th, LS ELECTRIC shares are trading at 180,800 won, up 23,200 won (14.72%) from the split-adjusted price. The stock price soared as high as 194,700 won during trading.
Previously, LS ELECTRIC suspended trading from the 8th to the 10th to implement a stock split, dividing the par value from 5,000 won to 1,000 won to expand the number of shares in circulation. As a result, the number of shares increased from 30 million to 150 million. The closing price on the 10th, the previous trading day, was 788,000 won.
When a stock split is implemented, the share price adjusts proportionally as the number of shares increases, so the fundamental corporate value does not change. However, it can attract attention from investors who avoid stocks with insufficient shares in circulation, and there is an optical illusion that the price is cheaper than before.
Securities firms are issuing positive outlooks on LS ELECTRIC's business performance. Kim Kwang-sik, a researcher at Kyobo Securities, stated, "Demand for ultra-high voltage transformers from renewable energy power generation companies, data centers, and energy storage systems (ESS) continues to expand among existing major customers," adding, "While new orders for 2026 were originally expected to be around 4 trillion won, we believe annual new orders of up to 5 trillion won are fully achievable."
