NH Investment & Securities evaluated on the 13th that the construction business for wind towers is facing increasing entry barriers, which will benefit CS Wind, a company with the necessary technology. They maintained their investment opinion as ‘Buy’ and the target price at 63,000 won. The closing price of CS Wind the previous day was 41,350 won.
NH Investment & Securities projected CS Wind's expected revenue and operating profit for 2024 to be 3.151 trillion won and 285 billion won, respectively. These figures represent increases of 107% and 171% compared to the previous year.
According to NH Investment & Securities, CS Wind entered into a contract with Siemens Gamesa, a global wind turbine corporation, in November 2022 to supply offshore wind towers from May 2024 to December 2030. Supplies will be made from CS Wind's subsidiaries in Vietnam and Portugal.
Research Institute Jeong Yeon-seung of NH Investment & Securities noted, “As wind towers grow larger, it has become more challenging to manufacture them without distortion.” The increasing difficulty in production has resulted in higher entry barriers, which is a favorable analysis for CS Wind. Jeong added, “The Vietnam subsidiary of CS Wind has a high proportion of skilled workers who have been with the company for a long time,” stating that they are optimized for producing towers that change with each project's new conditions (specifications).
The potential shortage of supplies for onshore wind towers in the United States starting in 2026 is also seen as a positive aspect. Research Institute Jeong stated, “CS Wind is a major components corporation for onshore wind towers, which may increase its bargaining power.”