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Sanil Electric Target Price Raised from 180,000 Won to 370,000 Won

On May 6, Shinhan Investment Corp. announced that it has raised its target price for Sanil Electric Co., Ltd. from 180,000 won to 370,000 won, citing expectations that the mid- to long-term boom will continue due to the expansion of the special transformer market. The investment opinion remains 'Buy'.

Choi Seunghwan, a researcher at Shinhan Investment Corp., stated, "We have raised the target price by 105.6% compared to the previous estimate, reflecting changes in the estimation period (from 2026 to 2027), adjustments to the net profit attributable to controlling shareholders, and a change in the price-to-earnings ratio (PER) multiple (from 29x to 45x)." He added, "As Sanil Electric is now fully joining the power value chain for data centers, it is now possible to apply a high multiple similar to leading global peers."

In the first quarter of this year, Sanil Electric Co., Ltd. recorded revenue of 150.3 billion won, up 52.1% year-on-year, and operating profit of 55.5 billion won, up 47.9% from the year prior. New orders reached 179 billion won. Researcher Choi commented, "Sales of special transformers for renewable energy and energy storage systems (ESS) surged 113.4% year-on-year to 106.7 billion won, driving strong growth." He also noted, "For the power grid segment, a rebound is expected in the second half of the year after inventory depletion."

On April 30, Sanil Electric Co., Ltd. announced that it had signed a supply contract with Bloom Energy to provide transformers for U.S. data centers. The contract amount is 50.3 billion won. Researcher Choi noted, "This is the largest single sales disclosure to date and represents the first meaningful order for a data center power developer." He added, "Rather than a one-time sale, Sanil Electric has secured 'partner' status, and the supply price is about 1.5 times higher than that for renewable energy, making it a high value-added product." He further explained, "In addition to Bloom Energy, the company is receiving product requests from more than 10 North American data center developers and is planning long-term partnerships with the top two or three among them."

There is also a view that attention should be paid to the expansion of the 154kV extra-high voltage transformer portfolio. Researcher Choi stated, "This is in response to requests from existing clients GE, Siemens, and Toshiba. In addition to distribution transformers, Sanil Electric plans to supply entry-level extra-high voltage transformers for renewable energy sites." He continued, "Half of the idle land at the second plant will be used to build a dedicated production line, with production scheduled to start in 2028. The current production capacity is around 800 billion won, but with expanded operations, the company would be able to handle over 1 trillion won."

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