[Click eStock] "CS Wind Maintains Steady Mid-to-Long-Term Growth Potential"

[Asia Economy Reporter Park Jihwan] Daishin Securities maintained a 'Buy' rating and a target price of 110,000 KRW for CS Wind, stating that it continues to demonstrate consistent mid- to long-term growth potential.

Han Kyung-rae, a researcher at Daishin Securities, evaluated, "Considering the start of operations at the U.S. subsidiary in the second half, expansion through the increase of the Turkey subsidiary and acquisition of local companies, and order flow exceeding targets, the company has secured high mid- to long-term growth potential."

Operating profit for Q2 this year was 28.2 billion KRW, a 17% increase compared to the previous year. Revenue rose 15.9% to 279 billion KRW. Researcher Han Kyung-rae stated, "Business profit margins improved due to the scale economy effect from 15.9% external growth compared to the same period last year, but the average KRW-USD exchange rate fell by 8%, resulting in operating profit remaining at the same level as the previous year."

It is evaluated that the acquisition effect of the U.S. local subsidiary in the second half and mid- to long-term growth drivers have been secured. Vestas Towers America, acquired in the first half, will have its performance reflected from August onward. The production capacity (Capa) of the U.S. subsidiary is about 500 billion KRW, and considering the initial increase in operating rate in the second half, new sales of over 100 billion KRW are expected. With the decision to expand through a 33 billion KRW capital increase in the Turkey subsidiary, the existing capacity of 50 to 80 billion KRW is planned to be expanded more than twice. Additionally, by acquiring 60% of ASM Industry shares, the company is establishing a local production system in Europe and diversifying its monopile business for substructures.

As of the end of last month, 80% of this year's order target of 850 million USD (974.1 billion KRW) has been achieved. Researcher Han Kyung-rae emphasized, "The order flow is exceeding the annual target," and forecasted, "Annual revenue is expected to increase by 21.9% to 1.1816 trillion KRW, and operating profit by 36% to 132.6 billion KRW compared to the previous year."

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