[Click eStock] "CS Wind, 2024 Sales Target of 3 Trillion Won... Large but Reasonable"

[Asia Economy Reporter Park Jihwan] Meritz Securities evaluated that CS Wind's goal of achieving 3 trillion KRW in sales by 2024 is ambitious but a reasonable and achievable target.

Moon Kyungwon, a researcher at Meritz Securities, stated, "CS Wind is expected to post first-quarter results that meet market expectations," adding, "First-quarter consolidated sales are projected to be 241.6 billion KRW, and operating profit 25.1 billion KRW, representing increases of 33.5%, and 54.3% respectively compared to the previous year." He explained that due to the seasonal off-peak period causing slower-than-expected sales growth and a slowdown in margin improvement caused by the sharp rise in raw material prices for thick plates, the outlook was somewhat lowered. However, considering the short lead time of 5 to 6 months for thick plate price increases, the impact is expected to be limited after the second quarter.

CS Wind aims for 3 trillion KRW in sales by 2024. This is considered a large but reasonable target, assuming new sales of about 1 trillion KRW in the U.S. in addition to the existing early 1 trillion KRW sales, and taking into account the still unrealized substructure business. To achieve this, the company is in the process of reviewing local M&A in the U.S. and Europe across the wind tower and substructure markets, as well as establishing a new subsidiary in Vietnam. Expansion of the Turkish subsidiary is also planned.

He emphasized the need to focus on momentum rather than immediately visible valuation. He said, "Although the price-to-earnings ratio (PER) of 38.5 times as of 2021 may seem burdensome, it decreases to 21.3 times based on 2023, reducing the burden," and added, "It should be kept in mind that earnings forecasts themselves could be revised upward once investment plans become visible."

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