KOSPI · Power equipment · EHV transformers (grid bottleneck)
HD Hyundai Electric
An extra-high-voltage transformer and power-equipment maker. AI-datacenter and US grid-modernization demand drove 2025 revenue KRW 4.08T (+23%), operating profit KRW 995B (+49%), Q4 margin 27.6%. North America revenue $1.09B, orders $2.88B, backlog $6.73B (3+ years). A $200M US 765kV transformer expansion. A Korean beneficiary of the grid bottleneck.
267260.KS Updated Jul 12, 2026 4 AI consumers· 1 recurring
Per the valuechain.wiki graph, HD Hyundai Electric is directly linked to 2 companies (0 supply, 2 revenue relationships) and reaches 4 companies within two hops; the links are backed by 4 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · 2025 revenue KRW 4.08T (+23%)
- Customer concentration · 40% North America; $6.73B transformer backlog.
- Segments · EHV transformers · Distribution/rotating
Revenue from
- US utilities · data centers (transformers) High confidence
Exports EHV transformers to US utilities and data centers (40% of revenue in North America, $6.73bn backlog, 3+ years) — the core beneficiary channel of the grid bottleneck, with backlog pre-locking future revenue.Mentions KO Analyst consensus Published Jul 6, 2026: HD Hyundai Electric consensus: avg target ₩1.39m (20 analysts), 2026 order target raisedConfirms EN PR Newswire Published Dec 1, 2025: HD Hyundai Electric expands US transformer production - Digital Realty Medium confidence
Supplies EHV transformers to large data-center REITs like Digital Realty — a direct channel for data-center power-intake equipment demand. - American Electric Power Medium confidence
Supplies EHV transformers to AEP's transmission network, one of the largest US grid operators — a flagship customer of grid-modernization orders.
Pays to
- Electrical steel · materials (undisclosed) Low confidence
Procures transformer raw materials such as electrical steel and copper (value not disclosed); copper/steel prices are the key cost variable.Confirms EN PR Newswire Published Dec 1, 2025: HD Hyundai Electric expands US transformer production - capacity expansion (undisclosed) Low confidence
US 765kV transformer capacity expansion ($200M) — investment to convert backlog into revenue amid the shortage.Confirms EN PR Newswire Published Dec 1, 2025: HD Hyundai Electric expands US transformer production
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| NVIDIA | lead2 | +125.5 | -50.3 | +239 | +171.2 | +38.9 | +13.3 |
| Amazon | lead2 | +2.4 | -49.6 | +80.9 | +44.4 | +5.2 | +6.3 |
| American Electric Power | lead1 | +10.7 | +10.4 | -11 | +18.2 | +29.4 | +19.2 |
| Digital Realty | lead1 | +30.7 | -41 | +39.9 | +35.9 | -10.1 | +18.2 |
| HD Hyundai Electric | node | +4.2 | +132.5 | +159.4 | +300.5 | +120.2 | -3.7 |
YTD as of 2026-07-10 · source: Yahoo Finance
The thesis is backlog visibility born of a structural shortage in extra-high-voltage transformers. AI-datacenter power surge and US grid modernization together lifted 2025 revenue to KRW 4.08tn (+23%), operating profit to KRW 995bn (+49%) and Q4 margin to 27.6%, with North America 40% of revenue. A $6.73bn backlog (3+ years of volume) has all but pre-locked future revenue, and a $200M US 765kV expansion is adding capacity — so backlog and expansion absorption, more than quarterly results, drive the stock, because transformers have long lead times and hard entry, keeping pricing power at the top of the cycle. The risk is that demand concentrated in US utilities and data centers (Digital Realty, AEP) is lagging — if the grid-investment cycle rolls over, new orders slip beyond backlog burn-off.
Analysis generated from returns as of 2026-07-10Analyst ratings
Consensus: Buy 5 · Hold 0 · Sell 0 · Avg. target ₩1,280,000 · Price ₩851,000 (07-10) · Upside +50%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| IBK Investment & Securities | Buy | ₩1,500,000 | Apr 29, 2026 | Report ↗ |
| LS Securities | Buy | ₩1,280,000 | Apr 14, 2026 | Report ↗ |
| Daishin Securities | Buy | ₩1,220,000 | Apr 13, 2026 | Report ↗ |
| NH Investment & Securities | Buy | ₩1,200,000 | Mar 20, 2026 | Report ↗ |
| SK Securities | Buy | ₩1,200,000 | Feb 20, 2026 | Report ↗ |
Q1 OP KRW258.3bn slightly missed on delayed Middle East deliveries, but new orders hit a record USD1.80bn (73% North America). Target sharply raised to KRW1.50m.
Analyses covering this node
- Power is the next bottleneck: where the chain crosses into the clock of generation, transmission and cooling Jun 23, 2026