1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at:https:/ The 20theditionof

2、 the EM Sentiment SurveyClick to viewHesitant bulls of summer Tariffs and forex to hit second quarter operating profit,but HHI to stand out helped by limited export exposure Solid order momentum outlook drives share price rallies,but we think a further re-rating needs more positive catalysts Maintai

3、n Buy on LSE;Hold on HDE and HHI;raise TPs Headwinds over 2Q25e:We expect US tariffs and unfavourable forex to undermine 2Q earnings for Korean T&D manufacturers,but 1H25 new order intake momentum should remain intact and exceed their annual guidance,in our view,helped by competitive capacity availa

4、bility on timely expansions.During reporting,the market is likely to focus on capital allocation updates,especially for additional capacity expansions,and potential guidance revisions to reflect the tariff impacts.Our result preview thoughts are below:HD Hyundai Electric(HDE;results on 22 July):We e

5、xpect HDE to report 2Q25e operating profit(OP)of KRW210bn(flat y-o-y)from revenue of KRW1.0trn(+9%),suggesting a consensus miss by 9%on US tariff impacts and inventory effects.LS Electric(LSE;results on 24 July):We expect LSE to report 2Q25e OP of KRW106bn(-3%y-o-y)from revenue of KRW1.3trn(+15%).Ou

6、r OP estimate suggests a consensus miss by 8%mainly due to the US tariff impacts.Hyosung Heavy Industries(HHI;results on 25 July):We expect HHI to report 2Q25e OP of KRW130bn(more than double y-o-y)from revenue of KRW1.3trn(+8%),meeting the consensus,mainly thanks to minimal export volume to the US