Hyosung Heavy Industries is once again gaining attention as a key beneficiary of expanding global power infrastructure investments. Amid a surge in demand for power grid expansion, primarily in the United States and Europe, the company's massive order backlog secured in the extra-high voltage transformer market is being evaluated as a powerful growth driver. In particular, the market is on high alert regarding the potential impact of NVIDIA CEO Jensen Huang's visit to South Korea.

During the morning trading session on the 8th, Hyosung Heavy Industries' stock was traded at 3,106,000 won, down 274,000 won (8.11%) from the previous trading day. Despite recent short-term selling pressures alongside a broader market correction, expectations for the company's mid- to long-term growth persist in the market.

In a report released last month, NH Investment & Securities analyzed that the order backlog for Hyosung Heavy Industries' heavy industries division reached approximately 15 trillion won. This represents the highest level in the extra-high voltage transformer sector, even when compared to major domestic and international competitors. The report projected that the company would continue to benefit from the expansion of global power infrastructure investments.

Demand for replacing aging power grids is increasing, centered around the United States and Europe. Additionally, the soaring power demand driven by the proliferation of artificial intelligence (AI) data centers is cited as a core background for the growth of the transformer market. Due to the nature of AI data centers, which consume massive amounts of power, a stable power supply is essential. Consequently, the demand for extra-high voltage transformers and power transmission and distribution equipment is also expanding.

NH Investment & Securities predicted that if the effects of Hyosung Heavy Industries' ongoing production capacity expansion materialize, sales growth will continue in the future. However, the report analyzed that the impact on earnings will be reflected gradually, as the large-scale expansion projects are scheduled to be completed around 2028.

The market is also noting that the power equipment sector is being re-evaluated from a simple cyclical industry to a core industry of the AI infrastructure era. This is because expanding AI data centers and electric vehicle charging infrastructure is impossible without expanding power grids. Centered on power equipment such as transformers and circuit breakers, Hyosung Heavy Industries is expanding its global market share and continuously increasing its order volumes in North America, the Middle East, and Europe. The industry assesses that if global power infrastructure investments continue to expand, Hyosung Heavy Industries is highly likely to reap long-term benefits.

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