[Special Stock] Sinseong ENG, Core Technology in Solar Cell and Module Manufacturing... Beneficiary of Inflation Reduction Act

[Asia Economy Reporter Hyungsoo Park] Sinsung ENG is showing strong performance.

As of 10:23 AM on the 8th, Sinsung ENG is trading at 2,365 KRW, up 5.11% from the previous day.

Hana Securities analyzed Sinsung ENG as a beneficiary of the global energy self-sufficiency policy. They did not provide a separate investment opinion or target price.

Choi Wonjun, a researcher at Hana Securities, stated, "Sinsung ENG is a specialized company in air control equipment (CE) for the manufacturing industry and solar modules (RE), and is a first-generation domestic solar company." He added, "They possess core technology for manufacturing solar cells and modules, and at the end of last year, they invested in expanding their solar module production from M6 (diagonal length 166 mm) to M10 (182 mm) specifications."

He continued, "This year, they have entered an explosive growth phase due to the expansion of global energy security policies centered on Europe and the United States," and explained, "Solar power generation is a key policy for global energy self-sufficiency, such as Europe’s REPowerEU and the United States’ Inflation Reduction Act."

Furthermore, "due to the recent war in Russia, global module prices have increased by more than 40% compared to the beginning of the year," and "overseas demand, led by Europe, continues to rise," he added.

Sinsung ENG has developed N-type high-output modules exceeding 620W. Researcher Choi explained, "Sinsung ENG has entered a phase where overseas sales will expand significantly this year with securing OEM (Original Equipment Manufacturer) orders for the U.S. market in the second half of the year," and "this is why attention is needed."

It is estimated to achieve sales of 591.3 billion KRW and operating profit of 26.2 billion KRW this year, representing increases of 30.1% and 1008.4% respectively compared to last year.