[Click eStock] "Samkang M&T Benefits from Japan's Offshore Wind Policy Announcement... Target Price Up 25%"

[Asia Economy Reporter Park Jihwan] Eugene Investment & Securities maintained a 'Buy' rating on Samkang M&T on the 28th, expecting benefits from the Japanese government's offshore wind power policy announcement, and raised the target price by 25% from the previous 24,000 KRW to 30,000 KRW.

Researcher Han Byunghwa of Eugene Investment & Securities stated, "The Japanese government finalized and announced industry-specific policies last weekend to achieve carbon neutrality," adding, "The power sector focuses on offshore wind power, and the target has been significantly raised from 10GW in 2030 to up to 45GW by 2040."

Researcher Han explained, "Japan's renewable energy market expansion has a precedent in solar power following the Fukushima accident," noting, "The Japanese solar power market, which was 1.7GW in 2012, rapidly grew to 10.8GW by 2015 after introducing the world's top-level solar power generation difference system."

It is judged that offshore wind power will follow the same example. The government will lead by selecting suitable areas and offering relatively high bid prices to promote market entry by global companies.

Based on the 45GW target, Japan's offshore wind power substructure market is estimated to be around 23 trillion to 28 trillion KRW, representing an annual market exceeding 1 trillion KRW. Even securing about 30% of this would generate annual sales exceeding 300 billion KRW.

Researcher Han emphasized, "Assuming an operating profit margin of 10%, the after-tax net profit exceeds 20 billion KRW," and added, "Even applying a PER of 20 times, the value increase of Samkang M&T due to the Japanese market exceeds 400 billion KRW."

This content was produced with the assistance of AI translation services.