[Utility Industry] Bill expected to arrive from the US

Doosan Enerbility headquarters building. (Provided by Doosan Enerbility)

The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhsec.com -- Ed.

Data center investments are expected to continue in 2H26, centering on the US. However, data center demand is being determined by gas turbine supply capacity. Therefore, we prefer the power generation (nuclear power+ gas turbine), electric cable, and power equipment sectors, in that order.

In preparation for the November midterm election, the Trump administration is highly likely to pressure allies to invest in the US. Korea plans to respond with investments in nuclear power plants (NPPs) and SMRs. We present Doosan Enerbility, KEPCO E&C, and Siemens Energy as our preferred plays.

In our view, the recent meeting between leaders of the US and China is unlikely to change the supply structure in the cable and power equipment industries. It is important to focus on companies with clear long-term plans for cash utilization. We recommend LS ELECTRIC, Sanil Electric, and LS Eco Energy.

Minjae Lee