[Click e-Stock] "Sanil Electric, Rapid Growth in North American Power Grid"

On May 2, LS Securities predicted that Sanil Electric would benefit from the rapid growth of the North American power grid market.

In the first quarter of this year, Sanil Electric recorded sales of 98.8 billion KRW and operating profit of 37.5 billion KRW. These figures represent increases of 40% and 61%, respectively, compared to the same period last year.

Sung Jonghwa, a researcher at LS Securities, explained, "Sales were 7% below previous forecasts due to deferred revenue caused by temporary shipment delays in the power grid division." However, he added, "Operating profit exceeded expectations by 3% due to an increased proportion of highly profitable pad transformers and cost reductions."

He further stated, "The power grid division continues to experience explosive growth in the North American region," and noted, "There is increasing new demand for pads, which have a higher average selling price."

He estimated that this year's sales would reach 464.2 billion KRW and operating profit would reach 158.3 billion KRW, representing increases of 39% and 45%, respectively, compared to last year.

Researcher Sung analyzed, "With the continued boom in the U.S. market and rapid growth driven by large-scale expansion, the valuation premium is justified considering the company's ability to maintain high profitability."