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[Alpha Biz=(Chicago) Reporter Kim Jisun] LS Electric is expected to perform well in the second quarter following the first quarter of this year.
In particular, the profitability of major businesses such as power devices and power infrastructure is expected to be expanding significantly as investment in local facilities has expanded significantly due to the U.S. Inflation Reduction Act (IRA) and the Peninsula Act.
According to financial information provider FnGuide on the 16th, LS Electric is expected to record sales of 980.6 billion won and operating profit of 82.8 billion won in the second quarter of this year. Sales rose 11.6% year-on-year and operating profit rose 37.9%.
It is expected to post a similar level of positive performance in the second quarter following the first quarter when its operating profit more than doubled year-on-year.
It is encouraging that operating profit estimates continue to be raised. LS Electric's second-quarter operating profit forecast by securities firms last month was around 72.7 billion won, but its forecast rose by about 10 billion won over a month as securities firms raised their forecasts. Kiwoom Securities recently analyzed that LS Electric's second-quarter operating profit will exceed KRW 100 billion for the first time since its establishment.
LS Electric's positive performance is due to the growing demand for global power devices and infrastructure that have been in full swing since last year. In particular, as infrastructure investment has increased significantly due to the Band Act and IRA implemented in the U.S. last year, facility demand has led to new orders for LS Electric's power distribution system. LS Electric's sales in North America increased by 14% from 9.4% last year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
