Hyosung Heavy Industries (298040) shares are forecast to break through the 5 million won mark. The stock currently trades at 3.94 million won per share, making it the highest-priced stock in Korea. Analysts expect earnings to grow rapidly on the back of a recent surge in new orders.
Yuanta Securities Korea raised its target price for Hyosung Heavy Industries to 5 million won from 4.2 million won in a report on the 27th. Shinhan Securities maintained its "buy" rating while sharply lifting its target price to 4.2 million won from 2.9 million won. Samsung Securities (3.03 million → 4.3 million won), Hana Securities (3.3 million → 4.3 million won), Daishin Securities (4 million → 4.8 million won) and LS Securities (4.1 million → 4.7 million won) have also recently raised their target prices on the stock.
As bullish research reports poured in, the share price rallied. Hyosung Heavy Industries jumped more than 10% in pre-market trading on the day.
Hyosung Heavy Industries posted first-quarter consolidated revenue of 1.3582 trillion won and operating profit of 152.3 billion won, up 26.2% and 48.7% year-on-year, respectively, though both missed consensus estimates. However, the company secured 4.1745 trillion won in new orders in the first quarter alone, driving a sharp rise in its order backlog. Korea's power equipment industry is enjoying a boom as demand for power equipment tied to expanded AI data center investment is compounded by replacement demand for aging U.S. power grids.
Order categories are diversifying. Hyosung Heavy Industries produces a wide range of power equipment including 765kV transformers, circuit breakers, solid-state transformers (SSTs) and high-voltage direct current (HVDC) systems, with orders rising across most product lines. The company's order backlog stands at around 15 trillion won.
"Demand for power equipment is surging as AI investment coincides with the timing of power grid replacement in North America," an industry official said. "Share price momentum is likely to continue, led by undervalued companies."
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