LS Electric (010120.KS): 3Q26 Earnings – Order Momentum Continues to Accelerate; Q&A Summary

Morgan Stanley maintains Overweight on LS Electric (010120.KS) with a price target of W270,000, implying 63% upside to the October 21, 2026 close of W166,100. 3Q26 revenue of W1.88tr and operating profit of W234bn (12.5% OPM) beat Bloomberg consensus by 10% and 17%, respectively, marking record quarterly revenue and operating profit. New orders moderated to W1.59tr from an unusually strong 2Q (a new customer's entry was pulled forward to April), but switchgear revenue rose 29% QoQ to W542bn while its backlog still increased 12% to W2.25tr, supporting the view that LSE is both delivering existing projects and replenishing its pipeline. Data centers accounted for more than 50% of year-to-date orders versus the ~45% full-year expectation given in July, a new US Big Tech customer began ordering in 3Q, and one customer entered a long-term agreement for medium-voltage products. Capacity expansion continues across Utah, Cheongju and LSPS, with 2027 capacity growth now expected above 30%. Mana