[Click eStock] "SK Hynix, Sustained Earnings Growth Expected Over Several Years"

On the 6th, Kiwoom Securities evaluated SK Eteonics, stating that "sales from wind power construction and fuel cells are steadily generated every year, and performance growth is expected to continue for the next several years." They anticipated that once sales from the Sinan Ui offshore wind power construction are reflected from the second half of next year, performance growth will accelerate further.

SK Eteonics is a renewable energy developer encompassing wind power, fuel cells, ESS, and solar power. The current pipeline under commercial operation is approximately 388 MW, and projects under construction total 394 MW, demonstrating extensive experience in renewable energy development and operation. Holding the domestic distribution rights for Bloom Energy's fuel cells and conducting fuel cell EPC business distinguishes it from other renewable energy developers.

Sales are divided into EPC construction sales and power generation (electricity sales) and service sales, with construction sales mainly generated from wind power and fuel cells. The current order backlog is about 730 billion KRW, and with the Sinan Ui offshore wind power project worth about 1 trillion KRW (taking approximately 3 years), steep performance growth is expected in the future. Additionally, with about 50 billion KRW in annual power generation and ESS service sales, the company is also evaluated to have performance stability.

For the third quarter, sales of 154.6 billion KRW and operating profit of 13.9 billion KRW (turning to profit QoQ) are forecasted. In the third quarter, sales from Chilgok (20 MW) and Yakmok (9 MW) fuel cells, and in the fourth quarter, increased progress in Gunwi Pungbaek (75 MW) wind power construction and sales from Boeun (20 MW) fuel cells are expected to drive performance improvement.

In the first half of next year, sales from Gunwi Pungbaek construction and in the second half, sales from Paju (31 MW) and Chungju (40 MW) fuel cells will be reflected, leading to expected performance growth compared to the previous year. Furthermore, if the Sinan Ui (390 MW) offshore wind power project begins construction in the first half, offshore wind power construction sales will start to be reflected from the second half.

In 2026, centered on the Sinan Ui offshore wind power, sales from Uiseong Hwanghaksan (99 MW) wind power and 69 MW of fuel cells will be added, anticipating record-high performance.

Sales of 482.8 billion KRW and operating profit of 49.1 billion KRW are forecasted for 2025, and sales of 651.3 billion KRW and operating profit of 65.9 billion KRW for 2026.

After Korea South-East Power failed to pass the preliminary feasibility study in August, putting a brake on the Sinan Ui offshore wind power project, the company's stock price has been stagnant. However, since the preferred bidder for project financing has been selected, construction is expected to begin by the first half of next year at the latest once shareholder composition issues are resolved. Currently, with the improvement in external conditions such as second-half performance improvement and interest rate decline, and the reduction of uncertainty surrounding the offshore wind power project, the investment attractiveness is considered high. The current stock price corresponds to a forward PER of 16.8 times for 2025 and 11.4 times for 2026, which is not considered a significant valuation burden compared to peer companies.

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