[Click eStock] "Sanil Electric Continues Positive Momentum"

On the 13th, IBK Investment & Securities maintained a 'Buy' rating and a target price of 90,000 KRW for Sanil Electric, which mainly produces distribution transformers such as renewable energy devices, ESS, and inverters, stating that a favorable business environment continues.

IBK Investment & Securities forecasted that Sanil Electric's first-quarter performance would meet the existing estimates of 100.2 billion KRW in sales and 32.9 billion KRW in operating profit. Considering the effect of the expansion of the second factory, it is expected that the growth rate of performance will increase in the second half of the year.

Regarding new orders, this year, driven by increased demand for transmission and distribution network transformers centered in the United States and expanded production capacity, it is expected to reach 520 billion KRW, a 24% increase compared to last year. In particular, about 34% of recent orders from November last year to February this year are identified as for AI data centers.

Sanil Electric started operating its second factory in February this year. Since discussions about major customers and future delivery volumes were already underway when the expansion was decided, the initial operating rate is expected to rise rapidly. However, considering production yield and depreciation expenses (4 to 5 billion KRW annually), the operating margin rate this year is expected to be similar to last year.

Analyst Kim Taehyun stated, "If the favorable business environment continues, annual sales growth of around 100 billion KRW is expected, and by the end of 2027, the second factory is estimated to be in full operation." He added, "Internal discussions about additional domestic expansions are likely to take place next year, and the establishment of a production plant in the United States within three years is also under consideration."

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