[Featured Stock] SGC Energy Expected to Achieve Annual Operating Profit in First Half of the Year

SGC Energy's stock price is on the rise. The strong profit momentum, showing that it achieved last year's annual operating profit in the first half of this year, appears to be influencing the stock price.

As of 9:59 AM on the 24th, SGC Energy is trading at 25,850 KRW, up 2.99% from the previous day.

Park Gwang-rae, a researcher at Shinhan Investment Corp., stated, "The downward stabilization of major raw material prices such as thermal coal and wood pellets will continue to improve profitability in the power generation and energy sectors. Additionally, the settlement profit reflecting the increase in the benchmark price related to long-term supply contracts for Renewable Energy Certificates (REC) will enable the second quarter to achieve profits similar to the first quarter, despite being the off-season for electricity and steam sales."

Park also added, "Changes are being observed in the construction and real estate sectors, which have been a sore spot until now. In civil engineering and construction, selective order activities focusing on stable contract projects are being carried out, and in plants, overseas orders are concentrated in Saudi Arabia, Malaysia, and other countries. This suggests that 2023 will be the bottom year, with sales and profits likely to rebound from 2025." He further noted, "The normalization of Korea Electric Power Corporation's performance reduces the likelihood of regulations such as the System Marginal Price (SMP) cap reappearing, which is also a positive investment point."