HD현대일렉트릭

Business Overview

Revenue mix by business segment (based on the most recent annual business report): Power Equipment (transformers, etc.) KRW 2.8352 trillion (69.5%), Distribution Equipment KRW 655.6 billion (16.1%), Rotating Equipment KRW 588.7 billion (14.4%). Approximately 70% of revenue is generated overseas (mainly North America), with GE, Hitachi, Siemens, and Schneider as global competitors.

The company is expanding its overseas production and sales base, including a second plant in Alabama, U.S. (construction started in 2026, targeting completion in H1 2027, with a partial investment of KRW 396.8 billion) and a 38.3% year-over-year increase in European revenue (2025).

5-Year Financial Trend

Peer Comparison

Snapshot as of the research date (E); exact reference date unknown — cross-verification recommended. Under the government's industry-consolidation policy in the 1980s, Hyosung was historically assigned domestic transformers and Goldstar Electric (now LS Electric) was assigned circuit breakers, while HD Hyundai Electric (then Hyundai Heavy Electric) was barred from domestic sales for 10 years during this period, shifting it to an export-oriented structure.

Valuation (Fact-Based Multiples)

EV/EBITDA and dividend yield (based on market price) were not identified in the research and are unavailable.

Fund Flows

On the sharp-decline day of 2026-07-24, institutions net bought 18,170 shares while foreign investors net sold 27,330 shares, with the two investor groups moving in opposite directions. The scale of this foreign net selling is similar to foreign net buying of +27,324 shares on the previous day (2026-07-23), leaving room to interpret it as a reversal of the prior day's net buying (this is not a primary source establishing causality). Short-selling ratio/balance, margin balance, and retail net buying were not confirmed even through alternative sources and are unavailable.

Governance

There has been no change in the status of the largest shareholder (HD Hyundai Co., Ltd.) — the annual business report's largest-shareholder-change section reports no applicable changes — though its ownership stake has continued to decline. Subsidiaries include wholly owned (100%) overseas units in Hungary, Texas, Switzerland, China, the U.S., Saudi Arabia, and Europe, as well as the domestic HD Hyundai Plaspo Co., Ltd. (73.99%). The status of further reinvestment (sub-subsidiaries) by the overseas subsidiaries is not subject to DART disclosure and is unavailable.

Macro Impact

As most revenue comes from dollar-denominated North American export contracts, a weaker KRW/USD rate (around KRW 1,475) and a stronger dollar index (+4.02% over 1 year) have a positive effect on won-translated earnings. The average lead time for ultra-high-voltage transformers has lengthened from 143 weeks (2024) to 160 weeks (Q1 2026), indicating that North American data center and grid investment demand is outpacing supply. Rising copper prices are a cost burden, but the long-term order contract structure (lead time of roughly 160 weeks) leaves room to pass costs through.

Risk Factors

• Trade & Tariffs: On 2026-06-28, the Section 232 tariff rate on large transformers was reduced from 25% to 15% (temporary through 2027-12-31), but the possibility of future tariff policy changes remains an ongoing variable.
• Exchange Rate: With approximately 70% of revenue coming from overseas (mainly North America), a shift to won strength could compress profitability.
• Raw Materials: Copper (LME) prices rose +5.52% over one month as of 2026-07-21. Quantitative data on other material prices, such as grain-oriented electrical steel (GOES), is unavailable.
• Valuation & Fund Flows: With a PER of 27.60x and PBR of 10.31x (snapshot as of the research date), there is debate over high valuation; there is a precedent of the stock falling -7.37% when the early-2026 revenue target (KRW 4.35 trillion) fell short of the market consensus (KRW 4.78 trillion).
• Market Correlation: On 2026-07-24, the KOSPI as a whole fell -2.29% amid a surge in international oil prices and interest rates, and peer power-equipment stocks (Sanil Electric -7.08%, Iljin Electric -4.35%) declined in tandem. A similar joint correction pattern also occurred on 2026-07-08.
• Intensifying Competition: The combined order backlog of the three domestic makers (LS Electric, Hyosung Heavy Industries, HD Hyundai Electric) reached approximately KRW 28 trillion cumulative through Q3 2025, up more than 90% from the same period in 2023, indicating strong industry conditions — but this also carries the inherent possibility of price competition as mid-to-long-term supply expands.
• Not Available: Litigation/dispute disclosure history, labor relations issues, and company-specific disclosures for 2026-07-24 itself were not confirmed in the research.

Recent Event Timeline

Original articles or disclosures specific to the individual stock on 2026-07-24 were not confirmed in the research and are unavailable — consistency was only indirectly verified using adjacent-day data.