[Click eStock] "SK Eturnix, Dual Growth in Solar and Wind Power... Earnings Expansion Expected in 2026"

On May 26, DS Investment & Securities analyzed that SK Eturnix is entering a full-fledged growth trajectory, with both solar and wind power as its two main pillars.

SK Eturnix is currently aiming to secure revenue from development services and power sales through the acquisition of 80MW of solar power generation assets. According to DS Investment & Securities analyst Ahn Juwon, "The acquisition of Solarnix No.1 (40MW) has been completed, and it is expected to generate 10 billion KRW in development service revenue and 194.5 billion KRW in power purchase agreement (PPA) sales over 30 years starting from 2026." This translates to approximately 650 million KRW per year, providing a stable cash flow structure.

In addition, a disclosure regarding the transfer of additional solar assets to Solarnix No.2 (SPC) has been made, and a PPA is expected to be signed soon. Analyst Ahn explained, "Based on the 80MW, annual power generation sales will reach about 13 billion KRW, and the scale is expected to increase every year." In particular, the power sales business is less affected by seasonality, which is expected to contribute to performance stability.

In the offshore wind power sector, the Shinan Ui Offshore Wind Power Project (390MW) has entered its final stage, aiming to start construction by the end of this year. The project was awarded through a fixed-price contract competitive bidding in 2023, with SK Eturnix and Hanwha Ocean participating. Analyst Ahn stated, "Currently, there is an ongoing change in the shareholder structure, which could lead to a decrease in SK Eturnix's EPC revenue in the future." However, given that the total project cost alone is 3 trillion KRW and the EPC scale is 2.5 trillion KRW, expectations for the project remain high.

DS Investment & Securities maintained a 'Buy' investment opinion on SK Eturnix and raised its target price to 26,000 KRW. Analyst Ahn estimated, "For 2026, revenue is projected at 785.3 billion KRW (up 130.3% year-on-year), and operating profit at 78.5 billion KRW (up 91.0% year-on-year)." He explained, "The main reasons for this significant earnings growth are the expected revenue from two fuel cell sites (about 330 billion KRW), the inclusion of 100 billion KRW in EPC revenue from the Shinan Ui project, and the inflow of 120 billion KRW in revenue from the Uiseong Hwanghaksan wind power project."

He added, "It is reasonable to base the target price on 2026, when full-scale earnings expansion is expected to begin," and noted, "The current share price is trading at a price-to-earnings ratio (PER) of 12.0 times based on the expected 2026 results."