LS Electric's North American data-centre orders top 1.2 trillion won in first half

LS Electric has secured more than 1.2 trillion won (roughly $870m) in North American data-centre orders in the first half of this year alone, putting the South Korean electrical equipment maker on course for sharply improved annual results.

iM Securities reaffirmed its "buy" rating on the company on 13 July, raising its target price to 265,000 won. That implies an upside of 30.9% from the closing price of 202,500 won on 10 July.

The first-half order total already exceeds the 800 billion won in North American data-centre contracts LS Electric booked across the whole of last year. The second quarter was particularly busy. Orders in that period included a 319 billion won power distribution solution for Bloom Energy; 170.3 billion won in switchgear and distribution transformers for North American hyperscale data centres; a 106.4 billion won, 38kV high-voltage power distribution system for AI data centres; 106.6 billion won in 345kV ultra-high-voltage transformers; 105 billion won in distribution equipment for Big Tech data centres; and 96 billion won in high-voltage switchgear.

iM Securities forecasts full-year revenue of 6.25 trillion won, up 26.0% year on year, and operating profit of 662.5 billion won, a rise of 55.4%. For the second quarter alone, it estimates revenue of 1.51 trillion won (+26.2% year on year) and operating profit of 160.3 billion won (+47.6% year on year).

Because North American data-centre contracts typically carry short delivery windows, orders won in the first half are expected to convert rapidly into recognised revenue in the second half of the year.

A further structural tailwind is emerging as Microsoft, Google, Meta and other technology giants expand on-site power generation within their data-centre campuses. The resulting growth in microgrids is driving demand for switchgear and distribution equipment, lending durability to the order momentum.

Global data-centre power consumption is projected to more than double, rising from roughly 415 terawatt-hours in 2024 to approximately 945 terawatt-hours by 2030. The North American data-centre power infrastructure market is forecast to grow from around $15.8 billion in 2025 at a compound annual rate of 6.7%, reaching approximately $23.5 billion by 2031.

iM Securities derived its target price by applying a target price-to-earnings multiple of 56.6 times — a 20% premium to the average P/E of the past twelve months — to a 2027 earnings-per-share estimate of 4,685 won.