[Click eStock] "G1 Energy, Order Expansion Phase... Profit Turnaround Expected This Year"

Hana Financial Investment Report

[Asia Economy Reporter Minji Lee] Hana Financial Investment on the 13th forecasted that G1WON Energy’s orders are expanding due to the resumption of construction projects, and its annual performance is expected to turn profitable.

G1WON Energy, established in 2002, is a specialized company in the design and construction of geothermal heating and cooling systems. It supplies heating, cooling, and hot water energy to buildings using underground energy. Its main business division is geothermal heating and cooling systems, accounting for about 90% of total sales. The company has a track record of supplying products to major domestic landmarks such as the Seoul Metropolitan Government New Office Building and Korea Electric Power Corporation’s new headquarters.

Sales in the second quarter are expected to decrease by 31% year-on-year to 5 billion KRW. Operating losses are expected to continue following last year, due to a significant drop in new orders last year caused by the impact of COVID-19. The order backlog for the first quarter stands at 34 billion KRW, down 8.4% year-on-year.

However, considering the recent resumption of existing private and public construction projects that were delayed due to raw material supply issues, and the general expansion of orders for heating and cooling systems concentrated in the second half of the year, quarterly performance improvement is expected in the second half of this year. Jaeho Choi, a researcher at Hana Financial Investment, explained, “As a leading company in geothermal energy technology, the company is highly likely to participate in new construction and reconstruction projects of buildings such as public projects, major domestic conglomerates, and general hospitals,” adding, “Benefits from the domestic real estate construction big cycle are also expected.”

Annual sales are expected to reach 29.9 billion KRW, and operating profit 500 million KRW, representing 19% growth and a turnaround to profitability, respectively. Researcher Jaeho Choi analyzed, “Structural benefits are expected from increased demand for geothermal systems due to the government’s upward adjustment of the RPS, the Ministry of Land, Infrastructure and Transport’s 2025 mandatory zero-energy building policy for private construction, and increased orders for private projects due to the real estate construction big cycle.”

Meanwhile, to secure new growth engines, the company started its fuel cell business in 2015 and signed MOUs with fuel cell manufacturers such as Doosan Fuel Cell. Although last year’s performance was weak due to the impact of COVID-19, structural growth in the new renewable energy market is expected.

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