[Click eStock] "Is the Renewable Energy Wind Blowing Again? Spotlight on 'Daemyung Energy'"

DS Investment & Securities forecasted on the 16th that Daemyung Energy, which focuses on renewable energy projects, will benefit from the results of the April 10 general election. With the opposition Democratic Party's landslide victory, expectations are rising that policies to expand renewable energy will gain momentum again.

In a report on the same day, An Juwon, a researcher at DS Investment & Securities, stated, "The Democratic Party is showing a policy stance to expand the share of renewable energy to 40% by 2035 to achieve 100% renewable energy usage (RE100)." He added, "Although it will take some time for these policies to be reflected in companies, it will have a positive effect on the stock price of Daemyung Energy, which operates renewable energy businesses centered on wind power."

An predicted, "Daemyung Energy will increase its EPC (Engineering, Procurement, and Construction) sales as it starts one to two onshore wind power projects annually in places like Gokseong, Andong, and Goseong." He also expected, "The progress of various wind power projects will accelerate due to government policies." Furthermore, he foresaw, "The Anma Haengsang offshore wind power complex is preparing for REC re-bidding this year, and Daemyung Energy will be able to seize opportunities in the emerging offshore wind power market."

However, it was estimated that the company's performance significantly deteriorated in the first quarter of this year. DS Investment & Securities' estimates for Daemyung Energy's first-quarter sales and operating profit this year are 15.4 billion KRW and 3.4 billion KRW, down 38.4% and 65.6% respectively compared to the same period last year. An explained, "The poor performance in the first quarter of this year is due to a base effect from the strong maintenance performance of Geumseongsan wind power and solar power in the first quarter of last year." He added, "EPC sales will clearly increase in the second half of this year as new projects beyond wind power proceed."

Accordingly, he presented Daemyung Energy's estimated sales and operating profit for this year as 102 billion KRW and 27.4 billion KRW respectively, representing increases of 65.4% and 63.9% compared to the previous year.