[Click e-Stock] "Sanil Electric Posts Surprise Earnings After Excluding One-Off Factors"

On November 6, Yuanta Securities analyzed that, after excluding one-off factors, Sanil Electric's operating profit for the third quarter of this year exceeded market expectations.

In the third quarter, Sanil Electric recorded sales of 132.7 billion won and operating profit of 42.7 billion won. Compared to the same period last year, these figures increased by 66.5% and 53.6%, respectively.

Son Hyunjung, a researcher at Yuanta Securities, stated, "Sanil Electric achieved its highest-ever quarterly sales," and added, "If we exclude a one-off bad debt expense of 7.9 billion won, the actual operating profit was 50.5 billion won, which surpassed market expectations."

She continued, "The bad debt expense was a conservative accounting treatment due to delayed collection of accounts receivable from certain clients," and added, "It is a temporary expense aimed at maintaining financial soundness."

She emphasized, "This expense is already being recovered and is expected to be reversed as non-operating income in the fourth quarter."

Researcher Son analyzed, "New orders in the third quarter reached 127.5 billion won, up 42.8% year-on-year," and predicted, "Achieving the annual target of 500 billion won should be easily attainable." She further explained, "Next year, the combined production capacity for special transformers at Plants 1 and 2 is expected to be about 500 billion won," and estimated, "Of the special transformers, 80% will be for renewable power plants and 20% for ESS."