HD Hyundai Electric has emerged as the top gainer on the KOSPI stock exchange in 2023, with its share price rising by 296.38% from 80,100 won in January to 319,000 won as of August 21. The company, a leader in transformer manufacturing, has benefitted from surging demand for medium and large transformers, driven by the expansion of global power grids and the growing need for high-voltage transformers, particularly in the U.S. market.

Analysts attribute the company’s stellar performance to its strategic investment in production facilities and its ability to meet the rising demand for power infrastructure, fueled in part by the construction of AI data centers. Jeong Hye-jeong, a researcher at KB Securities, noted that the transformer market is experiencing a supercycle, with supply shortages in the U.S. contributing to HD Hyundai Electric's growth.

Other top-performing stocks in the KOSPI this year include Korea Cosmetics Manufacturing, which saw a 198.71% increase, and a number of power and wire companies such as Samhwa Electric, Daewon Cable, and LS ELECTRIC, reflecting the broader trend of increased demand for power infrastructure.

The stock market anticipates further growth in AI, semiconductor, and power machinery sectors, particularly for companies with solid earnings performance. Hwang Joon-ho, a researcher at Sangsang Certification Authority, suggested that AI-related investments and profitability will continue to support these sectors in the near future.

Sources: mk.co.kr/en