Sands Capital Management, LLC - Emerging Markets Growth Composite on Hyosung Heavy Industries Corporation
Thesis
Hyosung Heavy Industries is a newly purchased Korean power-equipment company that Sands views as a beneficiary of a multiyear infrastructure cycle. Aging-grid replacement, rising electricity demand from AI and electrification, and renewable-energy integration are creating simultaneous demand for transmission equipment. The manager expects global transformer supply to remain structurally constrained through at least 2030, supporting pricing. HHI is particularly strong in 765-kilovolt transformers, where Sands says it is the global market-share leader and the only scaled producer serving the U.S. market. A joint venture with Quanta Services to manufacture high-voltage breakers in Pennsylvania further strengthens its U.S. positioning and potential margin-expansion story.
“We view the business as a key beneficiary of the secular demand for power equipment.”