**[Today’s Highlights]**
**LS Electric Soars 15.31% on News of Order from Musk’s AI Development Company**
**LS Networks 29.87%, Materials 25.06%, Eco Energy 20.20%**
On the 17th, LS Group stocks showed a strong performance on the domestic stock market. LS Electric (LS ELECTRIC), which received news of an order from the USA, and LS Eco Energy, which is forecasted to have its highest annual performance ever, are experiencing a rapid increase. Despite the sluggish performance of the KOSPI market, other affiliates and subsidiaries like LS Materials are also rising.
As of 10:37 AM, LS Electric was trading at 223,000 won, up 29,600 won (15.31%) from the previous day. The stock price surged to over 18% during the day after news broke that they would supply power equipment to xAI, the AI developer established by Elon Musk, CEO of Tesla. This increase was driven by institutions and foreign investors.
The strong performance is attributed to expectations of orders from the USA. Korean power equipment companies have benefited from the surge in power demand due to AI technological advancements, receiving export benefits to North America. LS Electric signed a supply contract with xAI and is negotiating the delivery of electrical distribution devices with three of the four major US tech giants, leading to the stock price increase.
While the KOSPI remains relatively flat, LS Group stocks are collectively strong. The holding company LS (5.94%) as well as LS Materials (25.06%), LS Eco Energy (20.20%), LS Marine Solutions (10.83%), and LS Securities (8.43%) all show positive trends. LS Cable, traded on the over-the-counter market K-OTC, also saw a rise of 9.54%.
Positive forecasts extend beyond LS Electric to other group stocks. LS Eco Energy is likely to have recorded its highest-ever performance last year due to strong exports in its core power and communication sectors to the USA. LS Eco Energy achieved record-high figures for three consecutive quarters last year.
Lim Min-jae, a researcher at NH Investment & Securities, commented on LS Eco Energy: “There is an expanding demand for EHV (Extra High Voltage) cables centered around Europe, and supportive conditions for both domestic and export prices of MV/LV (Medium/Low Voltage) cables. Revenue from UTP cables in North America is increasing amid US-China tensions. This market condition is expected to continue for some time.”
Amid a global increase in power demand, there are projections that LS Group stocks, with their power infrastructure value chain, will continue to grow. Eom Soo-jin, a researcher at Hanwha Investment & Securities, remarked, “The demand for power has soared in recent years due to the introduction of electric vehicles, increased heating and cooling needs, expansion of the appliance market, and the rise of AI and data centers. This trend is expected to continue for decades.”
Since last year, expectations towards power equipment-related companies have led to significant gains in LS Group stocks. LS Electric saw a 243.07% increase in stock price over the past year, the highest among group stocks. During the same period, LS grew by 51.09%, LS Eco Energy by 133.83%, and LS Marine Solutions by 90.15%.
Analysts believe that there is still room for further growth. Ahn Joo-won, a researcher at DS Investment Securities, stated, “The rapid growth of ultra-high voltage transformers will secure LS Electric’s profit stability. Expectations for the fourth quarter are rising, and growth based on an order backlog of over 1 trillion won in ultra-high voltage transformers is becoming more apparent. The expansion of production capacity (CAPA) will be completed starting in the second half of this year, enhancing investment appeal.”