[Click eStock] "CS Wind, Attention Needed on Direction of US Policy Changes"

Hana Securities analyzed on the 8th that attention should be paid to the direction of policy changes in the United States regarding CS Wind. They maintained a 'Buy' investment rating and a target price of 80,000 KRW.

CS Wind reported third-quarter results with sales increasing by 111.7% year-on-year to 805.5 billion KRW, and operating profit rising by 164.7% to 109.6 billion KRW during the same period. Jaeseon Yoo, a researcher at Hana Securities, stated, "The main factors for the significant growth in scale are the effects of the new acquisition in the substructure segment and the reflection of one-time earnings. The tower segment is also continuing to grow." He added, "However, excluding the Advanced Manufacturing Production Tax Credit (AMPC), the profit contribution from the tower segment this quarter was minimal. Costs related to expansions in Vietnam and Portugal have emerged, but recovery to normal margin levels is expected in the fourth quarter."

Researcher Yoo explained that CS Wind has entered a phase of reduced earnings volatility and that attention should be paid to the direction of policy changes in the United States. He said, "Since the negotiation of substructure unit prices was conducted during the final stages of the process, the possibility of further earnings volatility expansion is limited. After the acquisition, new orders have been successfully secured, and concerns about future scale reduction will be largely alleviated." He continued, "On the other hand, it is somewhat disappointing that the earnings growth level next year will be lower due to the base effect of one-time factors reflected for four consecutive quarters. In the case of the United States, a major growth base, the potential for changes in renewable energy policies could act as a risk factor."