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LS Securities Raises Sanil Electric Target Price by 16% on Strong Fundamentals

Electronic Technology · Electronic Equipment/Instruments · yonhap_finance · 2026-09-02

062040, 078020

LS Securities has upgraded its target price for Sanil Electric to 290,000 KRW, highlighting the company's superior growth and profitability metrics.

What Happened

Fundamental Strength: LS Securities emphasized that Sanil Electric maintains a dominant position compared to its global peers in terms of revenue growth, profitability, and capital health. Based on these robust fundamentals, the firm maintained a 'Buy' rating and raised the target price to 290,000 KRW.

Order Performance: Sanil Electric recorded 243.5 billion KRW in orders for the second quarter, a 163% increase year-over-year. The company is successfully securing high-value contracts, including distribution transformers for U.S. hyperscale data centers, which are driving both quantitative and qualitative growth.

Expansion Efforts: The company recently secured a 51.2 billion KRW contract for solar project reactors from TMEIC USA. Furthermore, Sanil Electric is accelerating its production capacity by acquiring land for a new third factory dedicated to 154kV ultra-high voltage transformers.

Market Outlook: Analysts believe that Sanil Electric remains significantly undervalued despite its strong performance. With global demand for power infrastructure rising, the company is well-positioned for sustained earnings growth and a potential re-rating of its stock price.

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