Sanil Electric showed strong momentum, rising more than 8%, driven by securities firms' earnings growth forecasts and expectations for expanded production capacity.

During the morning session on the 1st, Sanil Electric traded at 258,000 won, up 19,500 won from the previous trading day, with an increase exceeding 8%. This was the most notable performance within the power equipment sector.

In a report released on the same day, NH Investment Securities projected Sanil Electric's second-quarter consolidated revenue at 161.6 billion won and operating profit at 61.4 billion won. These figures represent a 26% increase in revenue and a 33% increase in operating profit compared to the same period last year, with earnings expected to meet the market consensus. The firm noted that high profitability is likely to be maintained following the first quarter.

Securities firms assessed that amid expanding global power infrastructure investment and continued growth in transformer demand, Sanil Electric's relatively low valuation and high growth potential are emerging as attractive investment qualities.

In particular, the expansion of production capacity for 154kV-class products was cited as a key factor that will drive future earnings growth. Once the capacity expansion begins in earnest, the company's order-taking competitiveness in both domestic and international power equipment markets is expected to strengthen significantly.

The market is focusing on the likelihood that demand for extra-high-voltage power equipment will persist, driven by the expansion of AI data centers and increased investment in power grids. While interest in power equipment-related stocks continues overall, Sanil Electric is also showing strength as growth expectations are reflected in its share price.

[This article was written with the assistance of AI. This article does not constitute investment advice, and the final decision and responsibility for investments lie with the investor.]