[Click eStock] "Record High Performance Anticipated for CS Wind... Full-Scale Overseas Market Expansion Next Year"

Sales of 1.2 Trillion Won and Operating Profit of 120 Billion Won Expected This Year
Renewable Energy Policies Flooding Each Country...Favorable Market Formation

[Asia Economy Reporter Minwoo Lee] CS Wind is expected to continue its growth momentum in the second half of this year, recording the highest-ever performance for the year. As countries are introducing favorable policies for the renewable energy market, it is anticipated that efforts to penetrate overseas markets such as the U.S. and Europe will accelerate.

On the 28th, Kiwoom Securities maintained its 'Buy' rating and target price of 105,000 KRW for CS Wind based on this background. The closing price the previous day was 74,100 KRW.

In the second half of this year, CS Wind is expected to record sales of 718.3 billion KRW due to increased order performance and the effect of consolidating new subsidiaries. This represents a 31% increase compared to the same period last year, indicating continued growth. However, due to a decline in profitability from the consolidation of new subsidiaries and acquisition-related costs, the operating profit margin is expected to fall slightly to 8%, compared to 12% in the first half. For the entire year, sales are projected at 1.2394 trillion KRW and operating profit at 118 billion KRW, marking the highest performance ever. These figures represent increases of 28% and 21%, respectively, compared to the previous year.

From next year, even steeper growth is expected. As of the end of July, the cumulative order total has already reached 680 million USD, achieving 80% of the annual order target. Additionally, by acquiring overseas subsidiaries, CS Wind will be able to target the U.S. and European markets. This is also analyzed to resolve the initial cost issues of the new subsidiaries. Furthermore, the effects of facility investments planned for the U.S. subsidiary from November this year to July next year are anticipated. The Turkish subsidiary is expected to more than double its existing production capacity through expansion, leading to even sharper growth. New factories for offshore wind towers on the U.S. East Coast and substructure factories in Asia are also being planned, with related plans to be announced in the fourth quarter. Given the mid- to long-term goal of achieving 3 trillion KRW in sales by 2024, additional growth drivers are expected.

The global growth of the renewable energy market is also a positive factor. In July, the European Union (EU) unveiled 'Fit for 55,' which includes 12 core laws of the 'European Green Deal,' aiming to reduce carbon emissions by 55% compared to 1990 levels by 2030. To achieve this, starting in 2026, taxes on high carbon emission risk products such as steel, cement, aluminum, fertilizers, and electrical products will be gradually increased.

Researcher Jonghyung Lee of Kiwoom Securities explained, "With the imposition of such carbon border taxes, eco-friendly industries like wind power are expected to experience high growth. China has also announced a roadmap for wind power by 2050 and carbon neutrality by 2060, and Vietnam plans to increase onshore and offshore wind power to about 12 gigawatts (GW) by 2025, so a favorable business environment for CS Wind is expected to continue."