1、Asia Pacific Equity Research17 September 2025J P M O R G A NAsia Power Equipment/UtilitiesStephen Tsui,CFA AC(852)2800-J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedVento Suen(852)2800-J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedAla

2、n Hon(852)2800-J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedLatin America Capital GoodsMarcelo Motta AC(55-11)4950-Banco J.P.Morgan S.A.Jonathan S.Koutras(55-11)4950-Banco J.P.Morgan S.A.The global electrification cycle has spawned multi-baggers in the power equipme

3、nt sector.Yet,share performance has been divergent YTD among the EM players,with Korean power equipment players being the best performers globally YTD(Figure 1G l o b a l m a j o r p o w e r e q u i p m e n t c o m p a n i e s Y T D s h a r e p e r f o r m a n c e),while the EM blue-chip WEG(WEGE3 B

4、Z)has notably underperformed its peers and the IBOV index.In this note,we delve into the business mix,orders,margins and other operating metrics and analyze the reasons behind the divergent share performance.While we believe that the share drivers(rising US T&D capex,rising prices of power equipment

5、)have been somewhat similar,improving the country beta(KOSPI+40%YTD,MSCI EM+25%),and new share drivers(HVDC,data center equipment)have led to a re-rating of the Korean names,while WEG has been de-rated,due to a slowdown in top-line growth,especially in the domestic market,reflecting a lower contribu

6、tion from the renewable energy segment(wind and solar),USD weakness,stabilization of TD revenues,and lower global growth impacting industrial equipment sales.At this level,we see a good entry point for WEG,due to its attractive valuation of 15x EV/EBITDA 2026E,low expectations for the coming quarter