Hyosung Heavy Industries is leading a rally in the power equipment sector, showing an upward trend of over 4% during the trading session. The expansion of global power grid investments, increased demand for extra high voltage transformers, and positive assessments from the securities industry are stimulating investor sentiment.

As of the morning of the 1st, Hyosung Heavy Industries was trading 4.5% higher than the previous trading day, demonstrating a strong performance. This is driven by an influx of buying into power equipment-related stocks overall, as expectations grow regarding the expansion of artificial intelligence (AI) data centers and increased investment in power infrastructure.

On this day, NH Investment & Securities evaluated that Hyosung Heavy Industries has secured unrivaled order competitiveness in the extra high voltage transformer market. According to NH Investment & Securities, the order backlog for Hyosung Heavy Industries' heavy industry division stands at approximately 15 trillion KRW as of the first quarter of this year. This is the highest figure in the extra high voltage transformer sector alone, even when compared to major domestic and international competitors.

The market is paying close attention to this massive order backlog as a key indicator of future sales visibility. The interpretation is that the already secured large-scale contract volume will enable stable production and revenue recognition for the next several years.

Hyosung Heavy Industries is cited as a prime beneficiary of the boom in the global power equipment market. Recently, major countries, including the United States, have been making large-scale investments to replace and expand aging power grids. Coupled with the expansion of AI data centers, electric vehicle charging infrastructure, and renewable energy, the demand for extra high voltage transformers is rapidly increasing. In particular, extra high voltage transformers, which are core facilities for transmitting electricity generated at power plants over long distances, require highly advanced technology, limiting the number of global suppliers and creating high barriers to entry for new players.

The expansion of production capacity is also becoming visible. NH Investment & Securities projected that the ongoing large-scale expansion project will be completed in phases by 2028. Once the expansion is finished, the increased production capacity makes it highly likely that order volumes will sequentially translate into sales.

The market assessment is that a foundation for mid- to long-term financial performance growth is being established as the already secured large-scale order backlog and production capacity expansion occur simultaneously. The recent highlighting of energy security issues due to geopolitical tensions surrounding the United States and Iran is also acting as a positive factor for the power equipment sector. As governments worldwide move to build stable power supply chains, the need for investment in power transmission and distribution equipment is growing even further.

The securities industry believes that the future expansion of global power grid investments and order performance in the North American market will act as key variables in Hyosung Heavy Industries' stock price trajectory. Market attention is currently focused on how quickly the 15 trillion KRW order backlog will translate into sales and profits.

[※ This article was written for the purpose of providing investment information, and investment decisions and responsibilities lie with the investor. Artificial intelligence (AI) was utilized in the process of writing this article.]