[Market Focus] Target Price Soars 90%... SGC Energy Up Over 6%

Hana Securities Raises Target Price for SGC Energy
"Focus on Earnings Growth and New Business Potential"

SGC Energy's stock price is showing strong performance as both its earnings growth and the potential of entering the data center business are being highlighted.

As of 9:36 a.m. on March 24, SGC Energy was trading at 60,800 won, up 6.11% from the previous trading day.

On the same day, Hana Securities maintained its "Buy" investment rating for SGC Energy and raised its target price to 76,000 won, a 90% increase from the previous target, stating that "the growth potential of new businesses is greater than expected."

Yoo Jaeseon, a researcher at Hana Securities, predicted that SGC Energy's first-quarter earnings for this year would meet market expectations. He analyzed, "The construction and real estate segments are expected to deliver stable results based on the existing order backlog," and "the power generation and energy segments are showing signs of margin recovery." First-quarter revenue is expected to reach 634.5 billion won, up 2.6% from the previous year, and operating profit is projected to increase by 74.6% to 30.6 billion won.

There is also an assessment that SGC Energy has ample long-term growth drivers. Yoo forecast, "Rapid earnings growth will be seen through 2030, driven by increased Renewable Energy Certificate (REC) revenue, rising electricity sales prices, and data center operations." In particular, the data center business, which aims to begin operations in the first quarter of 2028, is estimated to generate more than 100 billion won in annual EBITDA (earnings before interest, taxes, depreciation, and amortization).

There are also expectations for improved profitability in the company's core business. Yoo explained, "As coal prices remain low compared to crude oil, there is room for improved margins," and added, "The rise in emissions allowance prices is expected to offset much of the impact from reduced allocation." Another positive factor cited was the potential increase in electricity sales following the transition to a district electricity business next year, driven by higher selling prices.

Yoo concluded, "Both the core and new businesses are expected to post steep profit growth through 2028," and added, "If the contribution from the new businesses overtakes that of the core operations, SGC Energy's status could shift from a power generation company to a colocation (space rental) service provider."

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