Hyosung Heavy Industries is showing strength during trading. Securities firms presented the possibility of further gains based on the expansion of the U.S. power market and improving performance in the construction sector.

During the morning session on the 30th, Hyosung Heavy Industries is trading at 3,403,000 won, up 129,000 won (3.94%) from the previous trading day.

LS Securities Maintains BUY Rating, Sets Target Price at 5.3 Million Won

LS Securities maintained its 'BUY' investment opinion on Hyosung Heavy Industries and set a target price of 5.3 million won. Based on the previous day's closing price, this represents an upside potential of approximately 61.9%. The firm projected that second-quarter performance will meet market expectations.

The heavy industries sector is expected to continue benefiting from expanding U.S. power infrastructure investment. In particular, LS Securities positively assessed that the company is actively responding to growing demand through the expansion of its Memphis plant in the United States.

Construction Sector Shows Signs of Turnaround... Expected to Contribute to Earnings Improvement

The construction segment is also showing a clearer trend of profitability improvement. The previously sluggish construction business is showing signs of a turnaround, which is expected to contribute to earnings improvement. While new orders are expected to be strategically paced, the firm forecast that the company will maintain its growth foundation based on a stable order backlog.

"Top-Tier Fundamentals in Industry, Low Valuation Burden"

LS Securities evaluated that despite Hyosung Heavy Industries' fundamentals being among the top tier in the industry, the valuation burden is relatively low. The firm explained that the stock is sufficiently attractive relative to its corporate value and maintained it as a key stock of interest within the power equipment sector.

In the market, growth expectations for extra-high voltage transformer and power equipment companies continue as demand for power facilities persists, driven by expanding global power grid investments and the increase in artificial intelligence (AI) data centers. For Hyosung Heavy Industries as well, whether it can expand its order intake centered on the North American market is cited as a key variable for its future stock price.

[This article was written with the assistance of AI. This article is not intended to solicit investment, and the final decision and responsibility for investments lie with the investor.]