[Click eStock] "SK D&D, Offshore Wind Growth Visibility... Target Price Up"

Hi Investment & Securities raised the target price for SK D&D from 27,000 KRW to 35,000 KRW on the 18th.

SK D&D is a company engaged in real estate and renewable energy development projects. It is expected that related sales will begin in earnest with the Shinan Uido Offshore Wind Power Project, which will commence construction near Uido, Shinan-gun, Jeollanam-do in the second half of next year. The Shinan Uido Offshore Wind Power Project, which obtained a power generation business license in 2019, is a large-scale project with a total project cost of 2.5 trillion KRW. SK D&D and Hanwha Construction Division will jointly undertake construction, and Korea South-East Power Co., Ltd. will operate the project for 20 years after completion.

The Gulupdo Offshore Wind Power Project, jointly promoted by SK D&D, C&I Leisure Industry, and Daewoo Construction, also obtained a power generation business license in 2020. Construction is scheduled to begin around 2026.

In particular, attention is being drawn to the value of the newly established company as SK D&D decided to spin off its renewable energy and ESS business division on March 1 of next year. Lee Sang-heon, a researcher at Hi Investment & Securities, said, "As a growth strategy for the newly established EcoGreen through the spin-off, it will strengthen its renewable energy portfolio by entering the offshore wind power business," adding, "With various power resource operations and power trading revenue bases, EcoGreen can transform into a green energy solutions company."