Sangsangin Securities analyzed that CS Wind could potentially experience negative growth next year due to insufficient infrastructure balance and a slowdown in installations in North America. They lowered the target stock price from the previous 83,000 won to 65,000 won, while suggesting a 'buy' investment opinion. The closing price of CS Wind on the previous trading day was 42,050 won.
Sangsangin Securities explained that considering CS Wind's Danish infrastructure order balance (as of the third quarter of this year) of 763.7 billion won, they lowered the target stock price in reflection of a potential decline in the performance of the Danish subsidiary and the downward revision of the 2025 wind power outlook for the North American market by major market research institutions.
The shortage of orders for infrastructure is interpreted as the influence of the order gap that occurred during the normalization process of productivity. Sangsangin Securities predicted that CS Wind would show signs of a performance recovery starting in 2026.
Kim Kwang-sik, a researcher at Sangsangin Securities, said, "In cases of inadequate productivity, there is also the possibility of utilizing similar production processes of monopile towers in the Vietnam subsidiary to take on some external production roles."
However, there are several challenges for the stock price to rise in the short term. Research Institute Kim noted, "There has been an overall downward stabilization in the valuation compared to the performance in the wind power peer industry, and even turbine companies, which are direct clients, face challenges in improving profitability." He expected that a weakening of interest rate cuts would also exert performance pressure from a project perspective.
Differentiated performance growth is necessary to overcome this and lead to an increase in stock prices. Sangsangin Securities presented that to achieve a rise in stock prices, ▲increased shipments of offshore wind towers ▲infrastructure performance growth ▲and rising market share in North America are needed.
Research Institute Kim stated, "Due to Trump's trading and risk pre-reflection, stock prices have already fallen significantly," adding, "Starting next year, the rise in the offshore wind mix is expected to become more pronounced, and I recommend a medium to long-term approach."