[Click eStock] "Sanil Electric, Growth in Special Transformer Segment"

On October 14, Research Alarm analyzed that attention should be paid to Sanil Electric's growth in the special transformer segment for renewable energy and data centers. The firm presented a 'positive' outlook for the stock price and suggested a target price of 153,000 won.

Choi Seonghwan, a researcher at Research Alarm, explained, "Since 2022, the global expansion of investment in renewable energy has led to a rapid increase in Sanil Electric's sales of special transformers for solar power, wind power generation facilities, and battery energy storage systems (BESS)."

He added, "In the second quarter of this year, Sanil Electric's sales of renewable energy products to the United States more than doubled compared to the previous quarter. This is the result of a surge in demand for high-efficiency transformers, driven by expanded infrastructure investment in solar power and BESS following the implementation of the Inflation Reduction Act (IRA) in the United States."

He emphasized, "Sanil Electric is also making a mark in the special transformer market for data centers. With the expansion of artificial intelligence (AI) servers and the increase in high-capacity power demand, data centers are requiring products with lower efficiency losses and faster load response compared to standard transformers."

Choi explained that Sanil Electric is expanding its market share with a lineup of high-efficiency, low-noise, and highly durable transformers.

It is estimated that this year, Sanil Electric will achieve sales of 513.6 billion won and operating profit of 179.8 billion won. This represents an increase of 53.8% and 64.7%, respectively, compared to last year.