[Click e-Stock] "SK Hynix Secures Attractive New Growth Engine"

Kiwoom Securities analyzed that SK Eteonics is expected to continue its performance growth for the next several years as sales from wind power construction and fuel cells steadily occur every year.

SK Eteonics recorded sales of 154.1 billion KRW and operating profit of 25.1 billion KRW in the fourth quarter of last year. Sales decreased by 4% compared to the previous quarter, but operating profit increased significantly by 74%.

Kim Hak-jun, a researcher at Kiwoom Securities, explained, "Sales from the Gunwi Pungbaek wind power construction amounted to 32.2 billion KRW, and sales from the Geumyang fuel cell reached 92.3 billion KRW, reflecting a steady sales flow for two consecutive quarters," adding, "The operating profit margin improved significantly to 16.3% due to the inclusion of 10.2 billion KRW in sales from the Solanix No. 1 development service."

Researcher Kim predicted that sales from SK Eteonics' new power generation business will begin in earnest. In particular, as the scale of development, service, and power sales through the solar power generation structuring business increases annually, he forecasted enhanced performance stability and overall profitability improvement.

He said, "With the addition of power sales and O&M sales that continuously occur over multiple years, performance stability can be strengthened," and added, "Development service sales incur almost no cost, and the profit margin for power sales and O&M is expected to be in the high double digits compared to the company's overall profit margin, contributing to profitability improvement."

He also stated, "This year, Solanix No. 2 and No. 3 (each 40MW) are expected to be added, and the goal is to acquire approximately 100MW of solar power plants annually going forward," adding, "If the plan proceeds as scheduled, the expected sales from this business are estimated to expand from 20 billion KRW in 2025 and 32 billion KRW in 2026 to about 97 billion KRW by 2030."

Researcher Kim projected SK Eteonics' sales this year to be 368.8 billion KRW and operating profit to be 51.4 billion KRW, representing increases of 11% and 37%, respectively, compared to the same period last year. He viewed that the stock price will be driven by the commencement of the Sinanui offshore wind power project and achievements in new businesses (solar power generation structuring).