[Click eStock] "Reflecting Policy Uncertainty, CS Wind is a Buying Opportunity"

On the 18th, Meritz Securities analyzed CS Wind, a wind power company, stating that "the policy uncertainty originating from the United States has been largely reflected in the current stock price, so in the mid to long term, the current stock price presents a buying opportunity." However, the target price was lowered by 10% to 64,000 KRW. The investment opinion of 'Buy' was maintained.

CS Wind's consolidated financial statement for the fourth quarter, announced the previous day, showed an operating profit of 46.3 billion KRW, turning profitable compared to the same period last year. However, this was significantly below the consensus of 72.5 billion KRW. This was due to one-time factors such as the postponement of revenue recognition for some projects to January this year.

Meritz Securities forecasted that this year's annual sales would decrease by 0.6% compared to last year, reaching 3.05 trillion KRW. On the other hand, operating profit is expected to increase by 16.9% to 321.9 billion KRW. The effect of increased subcontracting in the foundation structure sector, which benefits from price hikes, is expected to be concentrated in the first and third quarters of this year, leading to an improvement in operating profit margin.

Analyst Moon Kyung-won stated, "Concerns about profit decline this year have been resolved by the price increase in foundation structures, and customers such as Vestas have also shown a clear trend of profitability improvement since the second half of last year," adding, "If only the policy uncertainty is resolved, a stock price rebound is fully possible."