LS ELECTRIC (010120) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
LS ELECTRIC is Korea's leading maker of power equipment such as transformers, circuit breakers and switchgear, the gear that safely carries and distributes electricity, and lately its earnings have been lifted by exports of ultra-high-voltage (UHV) transformers and data-center power gear. In the first quarter of 2026, revenue rose 33.4% year-on-year to ₩1.3766 trillion, operating profit jumped 45.0% to ₩126.6 billion, and net profit surged 76.7% to ₩119.0 billion. The point to watch is that while AI data-center buildouts and the replacement of aging North American grids keep UHV transformer demand strong, profits can grow quickly, but if the power-investment cycle cools or order intake slows, the pace of growth could ease again.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Power Equipment” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through forward P/E.
Power-equipment firms make the transformers and grid gear that move electricity, and their results swing with grid-investment cycles and large project awards. Because the backlog converting into future earnings matters more than results already booked, the forward P/E — reflecting expected earnings — is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 9.1% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 33.4% higher than a year earlier.
- ROE is 16.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 8.8%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder LS 48.46% (corporate)
Controlling bloc incl. related parties 49.33%
With the controlling bloc holding 49%, the ownership structure is stable.
🔎 In-depth analysis Reading
LS ELECTRIC does not generate electricity; it makes the equipment that safely carries, distributes and controls electricity once it has been produced. Its main products are transformers (which step voltage up or down), circuit breakers (which cut the circuit during an electrical fault), and switchgear and distribution panels (which split power into multiple lines). Added to this are factory automation (PLCs, inverters and the like) and green-energy businesses such as solar and energy storage. The core driver of recent profit growth is UHV transformers and data-center power gear; in particular, UHV transformer sales to the United States have risen sharply year-on-year thanks to the expansion of the Busan plant. It has long held the No.1 share of Korea's power-equipment market and is a flagship company in the field.
The latest close is ₩202,500 and the market capitalization is ₩30.4 trillion. The price sits above its 20-day moving average (₩190,720) and below its 60-day moving average (₩225,582). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.2, a neutral level. The one-month change is -1.7%, the three-month change is -35.8%, and the position relative to the 52-week high is -77.1%. Relative strength versus the KOSPI is 5 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 4% of all stocks. Over the past three months it lagged the index by 24.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Based on last year's (2025) confirmed results, the P/E ratio (how many times one year's earnings the share price represents) is 105.98x, which at first glance looks very high. But this figure is based on last year's earnings, before profit began to climb in earnest, so it does not capture the current pace of growth. In the detailed power-equipment sector, the market prioritizes the P/E on this year's expected earnings over last year's; reflecting this year's profit growth, the multiple falls sharply. The P/B (how many times net assets the share price represents) is 14.69x, on the high side. Profitability is solid. ROE (how much is earned in a year on equity) is 13.9%, indicating fairly efficient use of capital, and the operating margin is 8.6%. The balance sheet is stable. The debt ratio (debt relative to equity) is 136%, a manageable level, and with a current ratio of 180% and an interest coverage ratio (how many times operating profit can cover interest) of 7.1x, both short-term liquidity and the ability to service interest are ample. That said, the picture is a little more demanding when broadened to enterprise value. Net debt (total borrowings minus cash) is about ₩626.9 billion, and EV/EBIT (enterprise value including debt divided by operating profit, effectively a debt-adjusted P/E) is 85x, which is high. The FCF yield (actual cash generated relative to market cap, where higher is more attractive) is 0.3%, on the low side. In other words, relative to the cash it actually generates today it is still priced richly, and the market is buying future profit growth in advance. These multiples too will come down as this year's profit grows, but it is worth noting that the current values themselves are not low.
Growth has clearly accelerated of late. Revenue has grown at an average of 16.8% a year over five years, and net profit has more than tripled, from ₩84.7 billion in 2021 to ₩286.6 billion in 2025. In the first quarter of 2026 the pace stepped up another notch: revenue +33.4%, operating profit +45.0% and net profit +76.7%, with growth rates clearly higher than the prior year. The backdrop to this acceleration is clear. Replacement of aging U.S. grids and AI data-center construction are overlapping, concentrating demand for high-value products such as UHV transformers, and the Busan plant expansion has secured the capacity to fulfill those volumes. Reflecting the first-quarter trend, second-half capacity expansion and the working-through of an order backlog above ₩5 trillion, this year's expected net profit is estimated at around ₩490 billion. Applying that, the P/E on this year's expected earnings is about 62x, roughly half the 105x on last year's confirmed earnings. Looking only at last year's P/E it appears demanding, but in a phase where profit is growing quickly, judging on this year's basis is closer to reality. That said, this growth is tied to the power-investment cycle and order flow, so if the cycle cools the growth rate will naturally ease.
Disclosures center on large supply contracts (orders). On June 5, 2026 and May 14, 2026 came a succession of single sales/supply contract signings (voluntary disclosures), showing that large orders for data centers and power infrastructure are being firmed up into actual contracts. Because orders for UHV transformers and distribution equipment flow through to revenue, such supply-contract disclosures read as a leading signal for results over the coming quarters. On May 14 the first-quarter 2026 report was filed, confirming the rapid growth described above. On the funding side, a May 14 disclosure of a decision to increase short-term borrowings can be read as relating to working capital and equipment needs from expanding orders. Last year's dividend was ₩3,000 per share (a payout ratio of 31.1%), reflecting a balance of reinvestment for growth and shareholder returns.
In sum, LS ELECTRIC has a strong character as "Korea's flagship beneficiary of the power-grid super-cycle." The strengths are clear: demand is concentrating in the high-value areas of UHV transformers and data-center power gear, and the company is converting that demand into results through its No.1 domestic position and expanded capacity. Profit growth running well ahead of revenue growth is a sign of an improving product mix (a rising share of high-value products). The cautions deserve balanced attention too. The high P/E and EV multiples on last year's earnings reflect figures from before the profit inflection, but conversely that means much of the current high growth is already priced into the shares. So this stock is strong while power investment and data-center orders continue, but its growth premium can be given back when order momentum slows or when raw materials and currency pressure margins. The bottom line is that the direction of earnings is up, but the valuation hinges heavily on whether profit actually sustains that growth beyond this year.
🔎 Valuation vs peers Fairly valued
Large domestic manufacturers of UHV transformers and power equipment (transformers, circuit breakers, distribution gear).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Hyundai Electric | 37.44x | 13.19x | 37.84% |
| Hyosung Heavy Industries | 48.57x | 10.54x | 21.18% |
| Iljin Electric | 27.04x | 4.66x | 19.39% |
The 105x P/E on last year's confirmed earnings is a pre-inflection figure and does not reflect the current situation. For the detailed power-equipment sector it is more appropriate to look at this year's expected earnings rather than last year's; applying this year's estimated net profit (about ₩490 billion) brings the multiple down sharply to around 62x. Even on that lower basis, however, it still sits above UHV-transformer and power-equipment peers such as HD Hyundai Electric (about 40x), Hyosung Heavy Industries (about 51x) and Iljin Electric (about 29x). All three share the power-grid super-cycle premium, but LS ELECTRIC's current ROE (13.9%) is lower than HD Hyundai Electric (36.1%) and Hyosung Heavy Industries (22.1%), so on profitability alone the case for the premium is still relatively weak. On the other hand, the scale of its profit-growth acceleration is large even within the peer group, supported by earnings visibility from a threefold expansion of Busan capacity and an order backlog above ₩5 trillion. In short, it is hard to call it extremely cheap, and the premium will only be justified if the current growth actually continues beyond this year. We see it as a fairly valued range where the key question is whether growth persists.
Price history Close · MA20 · MA60
The latest close is ₩202,500 and the market capitalization is ₩30.4 trillion. The price sits above its 20-day moving average (₩190,720) and below its 60-day moving average (₩225,582). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.2, a neutral level. The one-month change is -1.7%, the three-month change is -35.8%, and the position relative to the 52-week high is -77.1%. Relative strength versus the KOSPI is 5 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 4% of all stocks. Over the past three months it lagged the index by 24.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -24.37% / 6M -69.74% / 12M -64.76%
Key metrics Computed vs sector median
Valuation
The P/E of 105.98x is above the sector median (37.44x). The P/B of 14.69x is above the sector median (10.54x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 16.4%, below the sector average (21.0%). The operating margin is 8.8%. The debt ratio is 156.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.0B | $3.2B | $3.5B | +9.09% ↑ faster |
| Operating profit | $228.2M | $273.8M | $299.6M | +9.41% ↓ slower |
| Net profit | $144.7M | $167.7M | $201.4M | +20.07% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.9B | $2.4B | $3.0B | $3.2B | $3.5B |
| Operating profit | $109.0M | $131.7M | $228.2M | $273.8M | $299.6M |
| Net profit | $59.5M | $63.4M | $144.7M | $167.7M | $201.4M |
| Revenue CAGR | 4-yr avg 16.80% | ||||
Revenue rose 9.1% year over year (2023 ₩4.2 trillion → 2024 ₩4.6 trillion → 2025 ₩5.0 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 9.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 16.8%. The two-year revenue CAGR is 8.3%. In the most recent quarter (Q1 2026), revenue was 33.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 16.4% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-05UpdateSingle sales/supply contract signed (voluntary disclosure) - large power-equipment supply contract confirmedOrders for data centers and power infrastructure are firming up into contracts, a leading indicator of revenue in coming quarters. Strengthens medium-term earnings visibility. Source
- 2026-05-14UpdateSingle sales/supply contract signed - power-equipment supply contractConfirms that order flow for UHV and distribution products is continuing. Revenue is recognized over the contract period. Source
- 2026-05-14EarningsFirst-quarter 2026 report filed - revenue +33.4%, operating profit +45.0%, net profit +76.7%Officially confirms the acceleration in growth. Demonstrates that strong sales of high-value products such as UHV transformers are feeding through to margin improvement. Source
- 2026-05-14FilingDecision to increase short-term borrowings - working-capital response to expanding ordersReflects working-capital needs from growth. With interest coverage at 7.1x, the ability to service interest is maintained. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-05Single supply/sales contract (amended)
- 2026-06-05Single supply/sales contract (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-22Disclosure
- 2026-05-22OwnershipLargest-shareholder ownership change report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14Disclosure
- 2026-05-14Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-14Single supply/sales contract (amended)
- 2026-05-12OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.