[Click eStock] "CS Wind Emerges as a Leading Beneficiary in the Carbon Neutral Era"

[Asia Economy Reporter Park Ji-hwan] IBK Investment & Securities evaluated CS Wind on the 20th as a representative beneficiary company in the era of carbon neutrality.

CS Wind is a specialized manufacturer of wind towers with a global network, focusing on the production and installation of towers that make up wind turbines. It has secured all four of the world's top turbine manufacturers as clients and is considered the largest global player with a network of seven overseas production subsidiaries. Its market share is estimated at 17%.

Minhee Lee, a researcher at IBK Investment & Securities, said, "Since it is a multi-product small-lot production and labor-intensive industry, improvements in production efficiency are clear depending on worker skill levels in welding and processes," adding, "With funds secured through a capital increase earlier this year, CS Wind acquired Vestas' US tower manufacturing subsidiary in June and Portugal's ASM Industries in July. Synergy effects are expected to begin in earnest from 2023 through expansion, customer base growth, and improvement of employee skills."

Furthermore, the industrial environment is considered favorable due to government support measures for the transition to a low-carbon economy. Researcher Minhee Lee evaluated, "Various policies by governments, mainly in developed countries, for a rapid transition to a low-carbon economy have been announced and implemented, making the renewable energy industry environment very favorable." Recently, the EU announced the draft of a large-scale green law package called 'Fit For 55' and plans to fully implement the carbon border tax starting in 2026. The Biden administration in the United States is also considering its introduction.

The researcher predicted, "Sales in the second half of the year will grow by 26.9% year-on-year due to increased order performance and the consolidation effect of newly acquired subsidiaries." However, due to a decline in profitability from the consolidation of new subsidiaries and increases in labor and other expenses, the operating profit margin in the second half is expected to decrease to 8.4%.