Kiwoom Securities predicted on the 19th that LS Materials (KOSPI: 417200) will achieve an operating profit turnaround in 2026, propelled by the diversification of end markets for its ultracapacitor (UC) products.
In a research report published that day, Kiwoom's analysts estimated LS Materials' 2026 revenue at 178 billion won (approximately $130 million), up 16% year on year, with operating profit of 3.3 billion won — a swing from an operating loss of 1 billion won in 2025. The recovery is expected to gather further momentum in 2027, with revenue projected to reach 196 billion won (up 10%) and operating profit surging 216% to 10.3 billion won.
Two new demand drivers stand out: power grid infrastructure and AI data centres. LS Materials' UCs are set to be incorporated into next-generation grid-stabilisation systems known as Enhanced STATCOM, and the company has been selected as a UC supplier to a global power-equipment manufacturer identified only as "Company S." A German power infrastructure project could be awarded as soon as this year; the UC supply value for a single such project is estimated at roughly 10 billion won.
On the AI data centre front, the company is in product-testing and supply discussions with a North American fuel-cell firm. An initial order could materialise within the year, and the report notes that by 2027 UC sales to fuel-cell customers may come to exceed revenue from the company's existing client base.
LS Materials is also weighing a significant expansion of production capacity. The scale under consideration substantially exceeds the doubling of capacity that had been contemplated at the time of the company's initial public offering. A firm plan is expected to be finalised by early next year at the latest, with the additional capacity intended to meet demand from 2028 onwards.
The company's largest shareholder is LS Cable & System, which holds a 43.5% stake. As of 18th June, LS Materials' shares were trading at 16,610 won, giving the company a market capitalisation of approximately 1.12 trillion won (around $820 million).