[Click eStock] "Genwon Energy Expected to Benefit from Renewable Energy Market Growth"

[Asia Economy Reporter Hyunseok Yoo] Hana Financial Investment analyzed on the 24th that G1WON Energy is expected to structurally benefit from the growth of the renewable energy market. No investment opinion or target price was provided.

G1WON Energy, established in 2002, is a specialized company in the design and construction of geothermal heating and cooling systems. Geothermal heating and cooling systems supply building heating, cooling, and hot water energy by utilizing underground energy. Since the drilling depth is 150-200m, it can be applied to all geological and topographical conditions in Korea.

Choi Jaeho, a researcher at Hana Financial Investment, said, "G1WON Energy is expected to structurally benefit from the growth of the domestic renewable energy market due to increased demand for geothermal and hydrothermal systems following the government's upward adjustment of the RPS, and the expansion of hydrothermal heating and cooling system supply driven by the implementation of the Green New Deal policy."

He explained, "G1WON Energy is the only domestic company possessing hydrothermal energy technology and is highly likely to participate in public projects such as the Chuncheon Hydrothermal Cluster, as well as new construction and reconstruction of buildings for major domestic corporations and general hospitals. We expect structural benefits from the expansion of the domestic renewable energy market."

In particular, Researcher Choi forecasted that a high order amount will be achieved this year. He said, "G1WON Energy is expected to achieve a total order amount of 40 billion KRW in 2021 based on increased demand from private and public construction projects and its unique domestic references. Considering the average contract period of orders is three years, this year's sales and operating profit are expected to be 35.1 billion KRW and 1.7 billion KRW, respectively, representing increases of 15.5% and 56.4% compared to the previous year."

He emphasized, "Structural benefits are expected to continue in the future due to the Ministry of Land, Infrastructure and Transport's 2025 policy mandating zero-energy buildings for private construction projects. This is why consistent attention is necessary."