[Click eStock] "SGC Energy Forecasts Record-Breaking Q4 Performance"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment stated on the 28th that additional growth in performance for SGC Energy is expected to be confirmed from the fourth quarter. The investment opinion 'Buy' and the target price of 62,000 KRW were maintained.

Yoo Jaeseon, a researcher at Hana Financial Investment, said, "The third-quarter performance met market expectations," adding, "Considering that there were no sales of Renewable Energy Certificates (REC), the performance was solid," and "the deferred sales volume is expected to be recognized in the fourth quarter." Taking into account the power generation facility expansion in November, self-developed project sales, and the rise in major price indicators, meaningful profit growth is anticipated.

Considering that the increase in wood pellet prices is smaller than that of other raw materials, the cost burden is also limited. Based on this year's performance, the price-to-earnings ratio (PER) is 13.9 times, and the price-to-book ratio (PBR) is 1.2 times.

Operating profit in the third quarter of this year was 27.3 billion KRW, a 2115% increase compared to the previous year. Sales amounted to 393.9 billion KRW, up 391.0%. Operating profit increased by 2115% to 27.3 billion KRW compared to the previous year.

Researcher Yoo said, "In power generation and energy, electricity saw significant growth in scale due to the rise in System Marginal Price (SMP) and increased power generation," and "steam sales recovered after securing new supply sources in August." Additional growth is expected in the fourth quarter due to strong SMP and increased steam supply.

In particular, the profit contribution from the construction and real estate sectors has increased, and positive performance is expected with self-developed project occupancy in the fourth quarter. Researcher Yoo emphasized, "Since REC sales are concentrated in the fourth quarter in power generation and energy, attention should be paid to fourth-quarter profits rather than the third quarter," adding, "Considering the rise in greenhouse gas emission allowance prices, the cost reduction from allowance sales is expected to increase."

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