[Special Stock] Sejin Heavy Industries, Leading Floating Offshore Wind Technology, Expected to Secure 11 Trillion Won Order

[Asia Economy Reporter Hyungsoo Park] Sejin Heavy Industries is showing strong performance. The rapidly growing floating offshore wind power market is expected to benefit Sejin Heavy Industries, which appears to have influenced its stock price.

As of 10:46 AM on the 5th, Sejin Heavy Industries recorded 8,660 KRW, up 5.74% from the previous trading day.

Hwang Eoyeon, a researcher at Shinhan Financial Investment, explained, "If the Ulsan floating offshore wind power project is fully promoted, orders worth 11.1 trillion KRW are possible," adding, "Sejin Heavy Industries signed an MOU on the 23rd of last month with Ulsan City to establish a supply system for the Donghae 1 floating offshore wind power project."

He continued, "Ulsan City plans to develop a 6.0 GW floating offshore wind power complex in the Donghae 1 gas field and the southeastern region including Ulsan," describing it as "the world's largest scale."

Additionally, he said, "Starting with the 200 MW Donghae 1 gas field, development of 1.4 GW in Ulsan and 4.6 GW in the southeastern region will proceed sequentially," and "Sejin Heavy Industries is expected to be responsible for producing the floating substructures for the Donghae 1 project."

He emphasized, "The LCOE (Levelized Cost of Energy) for floating offshore wind power development is 6.5 billion KRW/MW, and for substructures, it is 1.7 billion KRW/MW," adding, "Orders worth 348.7 billion KRW for Donghae 1, 2.5 trillion KRW for Ulsan, and 8.2 trillion KRW for the southeastern region are possible."

Researcher Hwang expects the Donghae 1 substructure orders by the end of next year and explained, "The government plans to actively utilize domestically produced floating wind power equipment in the southwestern region (2.4 GW) and Sinan (8.2 GW) to promote the domestic wind power industry."

He also stated, "The expected order sizes for substructures in the southwestern region and Sinan are 4.3 trillion KRW and 14.6 trillion KRW, respectively," and "They aim to install Doosan Heavy Industries' 8 MW turbines, which are scheduled to be developed by 2022."

He noted, "Sejin Heavy Industries is developing floating substructures in collaboration with the Dutch marine design specialist GustoMSC," and predicted, "If the Ulsan and southeastern projects proceed as planned and Sejin Heavy Industries secures all orders, the expected sales in 2028 will be 1.5 trillion KRW."

Researcher Hwang analyzed, "Based on construction experience in Ulsan and the southeastern region, orders from Sinan, the southwestern region, and overseas are also possible," adding, "Sejin Heavy Industries' yard spans 200,000 pyeong, making it the largest domestic manufacturer of substructures."

Hwang believes that a revaluation of corporate value is possible due to the full-scale domestic floating offshore wind power business.

Researcher Yang Hyungmo from YuHwa Securities analyzed, "GustoMSC handles the basic design, and Sejin Heavy Industries manufactures the tri-floater equipment," explaining, "In floating offshore wind power, the tri-floater is a key piece of equipment that supports the wind turbine floating offshore, and domestically, no other company besides Sejin Heavy Industries can manufacture it."

He added, "During the coal-fired power generation era, Doosan Heavy Industries' market capitalization rose from 1 trillion KRW to 16 trillion KRW in just three years," and "The stock price trend of Sejin Heavy Industries, a key equipment company in the offshore wind power era, is highly anticipated."