DS Investment Securities noted on the 17th that it expects the operating profit for CS WIND to increase by nearly 10% compared to the previous year; however, it also stated that the potential reduction of the Advanced Manufacturing Production Credit (AMPC) since the inauguration of U.S. President Trump should be considered.
It then adjusted the target stock price down from 97,000 won to 56,000 won, while maintaining an investment opinion of 'buy.' The closing price of CS WIND on the previous trading day was 41,300 won.
DS Investment Securities estimated that CS WIND's revenue for the fourth quarter of last year increased by 117.1% year-over-year to 811.4 billion won, and its operating profit shifted to a profit of 90.4 billion won. In the tower institutional sector, the base effect from the underperformance of tower results in the fourth quarter of 2023 and the improvement of performance from companies that expanded production facilities in the U.S. and Vietnam influenced this. For offshore wind structures, stable performance is expected to be maintained due to multiple price increases.
An Joo-won, a researcher at DS Investment Securities, explained, "There were great concerns in the market due to the decline in performance of offshore wind substructures, but growth in tower institutional sector performance is expected this year," adding, "The expansion of offshore wind tower production at the Vietnamese factory, which finished its expansion last week, achieving a double-digit operating profit margin, the stabilization of production at U.S. plants, and price increases for major customers are all positive for performance."
DS Investment Securities expects revenue this year to be 3.1 trillion won, a decrease of 4.5% compared to the previous year, while operating profit is expected to increase by 9.8% to 351 billion won.
Despite the Trump risk, CS WIND continues to secure orders steadily in the tower and substructure institutional sectors. In three disclosures from November to December of last year, about 1 trillion won in orders were received. This will be reflected in the performance sequentially from 2026. An, the researcher, stated, "The share of electricity production from wind energy in the U.S. has exceeded 10%," adding, "To ensure stable supply given the increasing electricity demand, investments in wind energy will continue."
However, it is reasonable for DS Investment Securities to emphasize that the possibility of the AMPC reduction since Trump's inauguration should also be considered. This year's expected operating profit and net profit attributable to the controlling shareholders are expected to increase by 9.9% and 16.8% year-over-year to 225 billion won and 135.4 billion won, respectively.
Research Institute An noted, "Although the stock price level has dropped significantly due to Trump's election, a short-term rebound in stock prices is quite possible as the valuation has become more comfortable with the growth in performance this year."