[Click eStock] "CS Wind, Impact of Trump's Inauguration to Be Seen... Target Price Down"

DS Investment & Securities on the 17th downgraded the target price of CS Wind from 97,000 KRW to 56,000 KRW, stating that "the possibility of a reduction in the Advanced Manufacturing Production Tax Credit (AMPC) after the inauguration of President-elect Donald Trump should be kept open." The buy rating was maintained.

On the same day, An Joo-won, a researcher at DS Investment & Securities, said, "The target price was calculated by applying a price-to-earnings ratio (PER) of 17.5 times to the expected net income attributable to controlling shareholders excluding AMPC. We believe that applying this standard to view performance and calculate valuation (stock price level relative to corporate value) is reasonable," he said.

Although last year saw greater stock price volatility than ever due to domestic and international issues, performance is expected to reach an all-time high. Last year's fourth-quarter results are forecasted to record sales of 811.4 billion KRW and operating profit of 90.4 billion KRW (turning to profit).

Researcher An said, "The tower division is expected to see a base effect from poor performance in the fourth quarter of 2023, along with improved results from production facility expansions in the US and Vietnam," adding, "Offshore wind structures are expected to maintain stable performance due to multiple price increase effects."

This year's expected performance is sales of 3.1 trillion KRW and operating profit of 351 billion KRW, representing a 4.5% decrease and a 9.8% increase respectively compared to last year. Robust demand is confirmed through public disclosures of orders for towers and offshore wind substructures.

Researcher An said, "Despite the Trump risk, steady orders are being secured in the tower and substructure divisions," noting, "Approximately 1 trillion KRW worth of orders flowed in through three disclosures in November and December last year for substructures. These will be gradually reflected in performance starting in 2026. Towers are also receiving steady orders, supporting this year's performance growth."

He added, "Although the stock price level dropped significantly due to Trump's election, valuation has become more comfortable with this year's performance growth," concluding, "We believe a short-term stock price rebound is fully possible."

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