LS Electric makes the power-distribution equipment and factory-automation gear used in factories, buildings, and power plants, and its profits are lately rising fast on exports of the ultra-high-voltage transformers used in power grids and data centers. In the first quarter of 2026 it posted record quarterly results with revenue of ₩1.3766 trillion and operating profit of ₩126.6 billion, North American revenue grew 80% from a year earlier, and the ultra-high-voltage transformer order backlog alone reached ₩3.1 trillion. What stands out lately is that, as long as demand from AI data centers and U.S. power-grid replacement continues, the order backlog and profit rise together and the company is strong, but if that demand cools, the nature of the power-equipment sector means prices and profit could wobble together, and the stock has already swung sharply.
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 13.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 8.6%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
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
- LS Electric is a company that builds and protects the paths along which electricity flows.
- It earns money in three broad ways.
- First is the power business.
- This covers the distribution equipment (circuit breakers and switches) that divides and cuts off electricity at factories, buildings, power plants, and grids, and the ultra-high-voltage transformers that carry high-voltage electricity from power plants — the core of its recent profit growth.
- Second is the automation business, where it makes the devices that control factory equipment (PLCs and inverters) and holds the No.
- 1 spot in domestic industrial automation.
- Third is the renewable and infrastructure-convergence business, such as solar power and EV charging.
- In other words, it is a company that supplies entire "equipment for handling electricity safely," not just simple components.
- The latest close is ₩189,400 and the market cap is ₩28.4 trillion.
- The price sits below its 20-day line (₩230,320) and below its 60-day line (₩240,937).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 37.9, a neutral reading.
- It is down 19.8% over one month and down 76.0% over three months, and it sits 78.6% below its 52-week high.
- Its relative strength versus the KOSPI is 32 (on a 1-99 scale that weights the past year's return against the index with more emphasis on recent performance; higher means stronger than the market).
- That places it in roughly the top 68% of all stocks by strength.
- Over the past three months it has lagged the index by 80.6%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- Profitability is solid.
- ROE (how much a company earns in a year on its equity) is 13.9%, putting its capital to work reasonably.
- That said, the operating margin of 8.6% and net margin of 5.8% mean margins themselves are not very high, though they are improving as the share of higher-margin ultra-high-voltage transformers grows.
- The balance sheet is fairly firm.
- A debt ratio (debt against equity) of 136% and an interest-coverage ratio of 7.1x (operating profit can cover interest seven times over) mean the burden is not heavy.
- There is one point to watch on valuation.
- The P/E (how many years of earnings the price represents) of 96x looks high, but it is based on last year's earnings (EPS of ₩1,911), just before profit surged.
- With this year's profit rising sharply, the real burden is far lower.
- For reference, on a debt-adjusted basis, EV/Sales (enterprise value divided by revenue) is around 7.3x, and net debt (total borrowings minus cash) of about ₩626.9 billion is within a manageable range.
- Growth is speeding up.
- Revenue has grown at a compound 16.8% a year over the past five years, and 2025 net profit (₩286.6 billion) rose 20.1% from a year earlier.
- The decisive change came in the first quarter of 2026.
- Revenue rose 33.4% from a year earlier, operating profit 45.3%, and net profit 76.7%, setting quarterly records.
- There are two engines behind the growth.
- One is the United States.
- North American revenue rose 80% from a year earlier to about ₩300 billion, driven by Big Tech's AI data-center investment and replacement of aging power grids.
- The other is the ultra-high-voltage transformer.
- Related revenue jumped 83%, and with the second production building in Busan going into full operation, capacity in this segment grew from ₩200 billion to ₩600 billion a year.
- The work in hand is also ample.
- The order backlog at the end of the first quarter was ₩5.6 trillion, of which ultra-high-voltage transformers accounted for ₩3.1 trillion.
- At this pace, this year's profit looks set to grow well above last year's, and even if the trailing P/E looks high, on a current-year earnings basis the burden falls sharply.
- Disclosures and company materials back up the basis for growth.
- The first-quarter report disclosed in May 2026 confirmed record quarterly results.
- In June, a single sales and supply contract disclosure showed that orders are continuing.
- Capital policy also favors shareholders.
- A 5-for-1 stock split decided at the end of 2024 widened liquidity, and with a dividend of ₩3,000 per share the yield is about 1.6%.
- It is also expanding local production in the United States, moving to strengthen its ability to serve a U.S. market that asks for tariff mitigation and local sourcing.
- LS Electric stands right at the center of the power-equipment boom.
- The strengths are clear.
- Large demand from AI data centers and U.S. power-grid replacement is flowing into ultra-high-voltage transformers and distribution equipment, and a ₩5.6 trillion order backlog secures several years of work.
- Expanding local U.S. production is a mechanism to hold onto this demand for longer.
- The trailing P/E is high, but with this year's profit surging, the real valuation should be viewed as lower than that.
- The cautions must also be noted.
- Power equipment is a sector that rides large investment cycles, so if AI or grid investment slows, orders and margins could weaken together.
- With the net margin still in single digits, profit has room to wobble on raw-material prices and exchange rates.
- In short, this is a stock that is strong while data-center and grid demand continues, and calls for caution when signals appear that this demand is cooling.
🔎 Valuation vs peers Fairly valued
The three domestic power-equipment companies (a real competitive set sharing transformer and grid exports and data-center power demand).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyosung Heavy Industries | 49.68x | 10.98x | 22.11% |
| HD Hyundai Electric | 40.10x | 14.48x | 36.11% |
A trailing P/E of 96x looks high versus the three power-equipment peers (40-48x). But three things must be considered together. First, this P/E is based on last year's earnings, just before profit surged, so it overstates the current situation. Reflecting the 76.7% year-on-year jump in first-quarter net profit, the multiple on a current-year earnings basis falls far below this. Second, LS Electric's ROE (13.9%) and net margin are lower than competitors' (Hyosung Heavy Industries ROE 22.1%, HD Hyundai Electric ROE 36.1%), so there is still a profitability gap even in the same boom. That gap is narrowing as the share of higher-margin ultra-high-voltage transformers grows. Third, all three companies are cyclical, riding the same data-center and grid demand, so valuation is more accurately judged by "how fast the order backlog converts into actual profit" than by "last year's multiple." Taken together, it is a premium on a trailing basis but, reflecting this year's profit trajectory, does not deviate greatly from peers — a fairly valued level.
Price history Close · MA20 · MA60
The latest close is ₩189,400 and the market capitalization is ₩28.4 trillion. The price sits below its 20-day moving average (₩230,320) and below its 60-day moving average (₩240,937). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 37.9, a neutral level. The one-month change is -19.8%, the three-month change is -76.0%, and the position relative to the 52-week high is -78.6%. Relative strength versus the KOSPI is 32 (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 32% of all stocks. Over the past three months it lagged the index by 80.6%. 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 -80.64% / 6M -76.11% / 12M -70.73%
Key metrics vs sector median
Valuation
The P/E of 99.12x is above the sector median (40.10x). The P/B of 13.73x is above the sector median (10.98x). 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 13.9%, below the sector average (22.0%). The operating margin is 8.6%. The debt ratio is 136.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.8B | $3.0B | $3.3B | +9.09% ↑ faster |
| Operating profit | $215.3M | $258.3M | $282.6M | +9.41% ↓ slower |
| Net profit | $136.5M | $158.2M | $190.0M | +20.07% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $2.2B | $2.8B | $3.0B | $3.3B |
| Operating profit | $102.8M | $124.3M | $215.3M | $258.3M | $282.6M |
| Net profit | $56.2M | $59.9M | $136.5M | $158.2M | $190.0M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 13.9% 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
- 2026-05-14EarningsFiled its first-quarter 2026 report — consolidated revenue of ₩1.3766 trillion (up 33.4% year on year), operating profit of ₩126.6 billion (up 45.3%), and net profit of ₩119.0 billion (up 76.7%), a record quarter.A profit surge in earnest. Shows the limits of a valuation based on last year's earnings and provides the basis for a re-valuation on current-year earnings. Source
- 2026-06-05UpdateSigned a single sales and supply contract (voluntary disclosure) — a power-equipment supply contract, confirming via disclosure that the order flow is continuing.New contracts layer on top of the order backlog (₩5.6 trillion at end of the first quarter), supporting future revenue visibility. Source
- 2026-05-22DividendDisclosure on shareholder-return and capital policy — maintains a dividend stance of ₩3,000 per share (yield of about 1.6%).Combines shareholder returns even during a period of profit growth. The dividend yield itself is not high, but it shows a balanced approach to returns for a growth stock. Source
- 2026-06-01Filing5-for-1 stock split reflected — share count rose from 30 million to 150 million shares (par value cut from ₩5,000 to ₩1,000). A liquidity-expansion policy decided at the end of 2024, with trading resuming in April 2026.Expands share liquidity. A surge just after trading resumed followed by a subsequent pullback overlapped, which is behind the stock's recent volatility. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and operating profit | revenue 1₩376.6 billion(+33.4%), operating profit ₩126.6 billion(+45.3%) | revenue 1₩376.6 billion, operating profit ₩126.6 billion | Confirmed | link |
| Shares outstanding / stock split | 15,000 | 3,000 → 15,000 | Confirmed | link |
| Estimated 2026 net profit / forward P/E | approx. ₩515.0 billion / approx. 53x | — | Unverified | link |
Recent filings
- 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.