[Click eStock] "CS Wind Secures Mid- to Long-Term Growth Engine with Full-Scale Entry into the US Market"

[Asia Economy Reporter Song Hwajeong] Daishin Securities on the 4th raised the target price for CS Wind from 100,000 KRW to 110,000 KRW, viewing that the company's entry into the U.S. market has become full-fledged, securing a definite mid- to long-term growth engine. The investment opinion was maintained as 'Buy.'

On the previous day, CS Wind announced that it decided to acquire 10,854 shares of Vestas Towers America at 100%. The acquisition amount is 166.545 billion KRW. Researcher Han Kyungrae of Daishin Securities said, "The production capacity of the acquired factory is at the level of 300 to 400 billion KRW, with plans for additional expansion in the future. Upon expansion, supply to global turbine companies such as Siemens and GE is planned," adding, "Since GE, Vestas, Siemens, and Nordex dominate the U.S. wind turbine market, this investment could directly benefit from the growth of the U.S. offshore wind market."

Additionally, the company announced that it signed a contract with Vestas Wind Systems A/S to supply wind towers produced at its U.S. subsidiary from next month until June 2026. The company expects sales of approximately 1.05 trillion KRW. The researcher said, "Considering the previously supplied wind tower volume with Vestas, the announced order size is conservative, and the scale is likely to increase as supply progresses," and added, "Following this investment announcement, the establishment of a new subsidiary in the U.S. East Coast is also expected."

With the full-scale entry into the U.S. market, it is evaluated that a definite mid- to long-term growth engine has been secured. The researcher explained, "Considering the U.S. government's anti-dumping complaints on imported wind towers and preferential policies for domestic components, this local factory investment has secured a definite growth engine," and added, "Next year's sales are projected to increase by 36.9% year-on-year to 1.6179 trillion KRW, and operating profit is expected to rise by 34.9% to 182.1 billion KRW, which are upwardly revised by 14.1% and 9%, respectively, compared to previous estimates."