[Click eStock] CS Wind Blows Again... "No Issues in the Wind Power Market"

Expected to Easily Achieve This Year's Target Order Amount of $850 Million
New Investment and Policy Momentum Remain... Valuation Pressure Eased by Recent Adjustment

[Asia Economy Reporter Minwoo Lee] CS Wind is expected to smoothly achieve its annual order target of 850 million USD (approximately 970.7 billion KRW). Policy tailwinds such as investment in its U.S. production subsidiary and entry into the substructure market remain strong, leading to an analysis that the company will post solid results.

On the 11th, Hanwha Investment & Securities maintained a 'Buy' rating and a target price of 113,000 KRW for CS Wind based on these factors. The previous day's closing price rose 5.73% to 64,600 KRW. Researcher Jaeyeon Lee of Hanwha Investment & Securities explained, "CS Wind's stock price, which had been undergoing strong corrections, recently rebounded. The listing of new shares from the bonus issue on the 5th alleviated concerns about potential selling pressure (overhang), and the recent price decline has somewhat reduced valuation burdens."

Based on the corporate briefing held the previous day, Hanwha Investment & Securities expects CS Wind to deliver solid performance again this year. Last year, CS Wind's annual order volume exceeded the target of 700 million USD, reaching 830 million USD. The global market share, excluding China, was estimated to be around 16%. Considering the global trend of expanding wind power investments, the order target of 850 million USD for this year is also expected to be achieved without difficulty.

Various investments are also progressing smoothly. In the U.S., CS Wind plans to invest in production subsidiaries in the Midwest, where onshore wind installations are high, and the East Coast, where offshore wind growth is expected. Investment in the Midwest region is expected to be decided first, and the possibility of market entry through mergers and acquisitions (M&A) is increasing. Researcher Lee stated, "If an M&A deal is concluded, sales can be generated in a short period without large-scale expansion. The decision on investment in the U.S. production subsidiary could be made as early as the beginning of next month."

The possibility of entering the substructure market is also growing. As offshore wind demand is expected to increase, demand for substructures is also projected to expand accordingly. In November last year, CS Wind signed a memorandum of understanding (MOU) with Denmark's CIP for the design of floating substructures for domestic use. It is anticipated that CS Wind will monitor the demand expansion trends of major clients for substructures and consider new factory investments within Asia in the future.

Expansion of existing production subsidiaries is already underway, with the Turkish subsidiary being a representative example. Although the absolute production scale is not large, it is positively evaluated for its ability to respond to European demand. Researcher Lee said, "In the long term, various expansions and new investments in production subsidiaries will translate into sales, advancing the timeline for achieving the 2025 sales target of 3 trillion KRW. Policy momentum also exists, including the UN climate change summit hosted by U.S. President Joe Biden on Earth Day, April 22, and the European Union's Carbon Border Adjustment Mechanism (CBAM) to be presented in June."

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