LS Electric Stock Plunges 51.1% from May Peak to 163,800 Won Despite Record Q2 Earnings

According to Korean Economic Daily, LS Electric's stock fell 6.67% to 163,800 won on July 29, marking a 51.1% decline from its May peak of 328,500 won. The sell-off occurred despite the company posting record quarterly results: Q2 revenue of 15.77 trillion won and operating profit of 178.5 billion won, alongside record new orders of 2.08 trillion won that pushed total order backlog near 7 trillion won.

Analysts attribute the decline to valuation concerns, with the stock trading at a 12-month forward price-to-earnings ratio of 38.7x and price-to-book ratio of 12.6x amid broader KOSPI index weakness. However, all 16 analysts covering the stock maintain buy ratings, citing LS Electric's strong competitive position in AI data center power infrastructure, where lead times for its distribution panels average under 10 months, enabling faster earnings recognition than competitors.