[Click eStock] "CS Wind's Performance Shows Both Positives and Negatives... Target Price Maintained"

Positive Surplus in BLADT Division
Negative Sales in Low Tower Division
Expected Benefits from Growth in the US Market

Sangsangin Securities analyzed CS Wind's 4th quarter 2023 performance as a result with both positive and negative aspects coexisting. They maintained a 'Buy' investment rating and a target price of 83,000 KRW. CS Wind's closing price on the 29th was 51,700 KRW.

On the 4th, Kwangsik Kim, a researcher at Sangsangin Securities, stated, "CS Wind's 4th quarter 2023 results showed sales of 402 billion KRW and operating profit of 34.4 billion KRW, slightly below the market consensus (average forecast)," adding, "It was a result with both positive and negative aspects."

The positive aspect was the profitability of BLADT, which had been a concern. Through smooth negotiations with clients, a price increase led to a large-scale profit. Additional non-recurring income is expected to occur during 2024. The negative aspect was the low sales in the tower segment. Excluding AMPC, tower segment sales were about 200 billion KRW, the lowest level since 2021.

CS Wind is expected to benefit from growth in the U.S. market. Researcher Kim said, "The U.S. onshore wind sector is rapidly rising. VESTAS's 4th quarter onshore wind orders reached 8.2 GW, the highest single-quarter new order since 2020," adding, "In 2024, the proportion of VESTAS in the U.S. subsidiary is expected to increase to about 80%, and profitability is expected to improve due to increased productivity." On the other hand, offshore wind is showing signs of recovery, but the top company Orsted lowered its 2030 target from 50 GW to 35?38 GW. While there is no disagreement about the long-term growth of offshore wind, there is a possibility of a speed adjustment."