Ls Electric Co., Ltd (010120)

**Business Overview** LS ELECTRIC is a comprehensive power solution company encompassing the power, automation, and smart energy sectors. Its key business areas include power equipment and systems that supply and protect electricity from power plants to consumers, industrial automation that maximizes efficiency in production sites, and green businesses such as smart grids, solar power, HVDC, and ESS. Core products include low/medium/high-voltage equipment, switchgears, ultra-high-voltage transformers, PLCs, inverters, and servos. Based on consolidated revenue in 2023, the power business accounted for approximately 72%, the automation business for approximately 13%, and metal and IT-affiliated subsidiaries for approximately 15%. Key clients include Korea Electric Power Corporation (KEPCO), energy-intensive companies, overseas power authorities, IT-related companies, and construction companies. Notably, the company holds a dominant market share of over 70% in the domestic data center power distribution solution market. **Core Competitiveness** The company's core competitiveness lies in its ability to provide total power solutions covering transmission, transformation, and distribution, as well as its robust technological capabilities in power distribution solutions. It secures an overwhelming market position in the domestic data center power distribution solution market and leads the next-generation power market through the development of High-Voltage Direct Current (HVDC) technology and the ownership of dedicated factories. Furthermore, LS ELECTRIC strengthens its global production infrastructure and delivery competitiveness by establishing a production base in Texas, USA, and acquiring local companies. It also demonstrates strength in the aging power grid replacement market through synergies with LS Group affiliates. **Performance Analysis** LS ELECTRIC has recently recorded robust revenue growth. Revenue grew by 7.6% from KRW 4,230.5 billion in 2023 to KRW 4,551.8 billion in 2024 and is estimated to increase by 9.1% to KRW 4,965.8 billion in 2025. Operating income also grew by 19.9% from KRW 324.9 billion in 2023 to KRW 389.7 billion in 2024 and is projected to increase by 9.4% to KRW 426.4 billion in 2025. Operating profit margin has shown a consistent improvement trend, rising from 7.68% in 2023 to 8.56% in 2024 and 8.59% in 2025, indicating enhanced profitability. **Financial Soundness** In terms of financial soundness, LS ELECTRIC maintains a favorable level. The debt-to-equity ratio as of 2025 is 131.48%, showing a slight decrease from the previous year and indicating a stable level. The current ratio is 180.02% in 2025, demonstrating excellent short-term debt repayment capability, and has improved from 165.31% in 2024. Return on Equity (ROE) has consistently risen from 12.05% in 2023 to 12.82% in 2024 and 13.27% in 2025, indicating increasing efficiency in capital utilization. **Outlook** Going forward, LS ELECTRIC is expected to achieve continuous growth amidst a "super cycle" in the power industry, driven by surging electricity demand due to the proliferation of AI and increased data center construction, as well as the arrival of the aging power grid replacement cycle. The company plans to accelerate its overseas business expansion, particularly by focusing on high-growth areas in the North American market such as data center power systems, microgrids, ultra-high-voltage transformers, and ESS. Through investments such as expanding ultra-high-voltage transformer production capacity and securing local switchgear manufacturing facilities in the US, the company will actively respond to increasing demand, and rapid growth in the ESS business is also projected.