[Click eStock] "Entry Barriers Up · Supply Down... CS Wind, Target Price Maintained"

On the 13th, NH Investment & Securities maintained a "Buy" rating and a target price of 63,000 KRW for CS Wind, a wind tower manufacturing company, stating that "the market entry barriers are increasing due to the upsizing of wind turbines and towers, and a mid- to long-term shortage of tower supply is expected, making price increases highly likely." The closing price on the previous day was 41,350 KRW.

On the same day, Jeong Yeonseung, a researcher at NH Investment & Securities, said, "As wind towers have grown larger, manufacturing towers without twisting has become more difficult, and the required facilities and land also demand upsizing, increasing the manufacturing complexity and raising entry barriers." He added, "Despite uncertainties, CS Wind has already secured sufficient production volume for next year."

Researcher Jeong explained, "According to the wind tower supply contract signed in November 2022 with Siemens Gamesa, a global wind turbine company, CS Wind is actively producing offshore wind towers. They supply offshore wind towers worldwide and have recently been producing and delivering towers with diameters exceeding 8 meters during the turbine upsizing process."

The role of the first-class tower factory in the Vietnam subsidiary is also expected to be highlighted. Researcher Jeong emphasized, "The Vietnam subsidiary is optimized for producing new towers that vary with each project due to its high proportion of long-term skilled workers," adding, "Research and development (R&D) within the company is also concentrated in Vietnam. Skilled personnel are dispatched from Vietnam to other subsidiaries to contribute to productivity improvements."

He further stated, "Although the reduction of offshore wind projects by global developers poses a mid- to long-term risk factor, orders for offshore wind turbines from client wind turbine companies are still ongoing," and "there is a possibility of tower supply shortages in the U.S. onshore wind sector starting in 2026. As a key component company, CS Wind is expected to have increased price negotiation power."

This content was produced with the assistance of AI translation services.