[Click eStock] "CS Wind, Strong Profit Margin Improvement... Target Price Up 5%"

[Asia Economy Reporter Park Jihwan] Daishin Securities evaluated CS Wind on the 7th as having improving fundamentals along with mid- to long-term growth momentum. Accordingly, it maintained a 'Buy' investment rating and raised the target price by 5.15% from the previous 95,100 KRW to 100,000 KRW.

Han Kyungrae, a researcher at Daishin Securities, stated, "Considering the confirmed improvement in high profit margins, expected investment momentum in the US local market, and an accelerated order flow compared to targets, it has a clear mid- to long-term growth direction."

Operating profit in the first quarter of this year was 31.6 billion KRW, a 94.5% increase compared to the previous year. During the same period, sales rose 33.7% to 242.1 billion KRW. The improvement in operating profit was analyzed as due to enhanced production efficiency and economies of scale at overseas subsidiaries, simultaneous increases in supply prices due to rising raw material costs, and exchange rate effects at overseas subsidiaries such as the Turkey branch.

It is also evaluated to have secured mid- to long-term growth drivers. Announcements related to the acquisition of a US local tower company and investment in a newly established corporation are expected within the first half of this year.

Researcher Han Kyungrae said, "The US administration has completed its review of the 800MW offshore wind project Vineyard Wind in the northeastern US, and full-scale investment expansion is expected," adding, "The Biden administration announced a 30GW offshore wind investment target by 2030, ensuring high mid- to long-term growth." It was explained that the Malaysian subsidiary, which previously handled the US market, will respond to the European market once the US local factory is operational.

Annual sales for this year are estimated to increase by 21.9% to 1.1816 trillion KRW compared to the previous year. Operating profit is expected to rise 40.8% to 137.4 billion KRW.

The researcher said, "As of the end of April, it is understood that nearly 50% of this year's order target of 850 million USD (955.4 billion KRW) has been achieved," adding, "Since strong performance was recorded from the first quarter, which is seasonally an off-season, quarterly performance growth is expected to continue."