KB Securities said on the 30th that SK oceanplant is expected to fill its order backlog starting from the second half of this year, leading to improved performance. The target stock price has been raised by 15% from 20,000 won to 23,000 won, and the investment opinion remains "buy."
SK oceanplant is projected to have sales of 995.7 billion won and an operating profit of 56.6 billion won this year, representing increases of 50.3% and 35.3%, respectively, compared to last year. However, while overall growth is expected to continue, profitability is anticipated to decline compared to last year, due to a higher proportion of lower-margin special vessel sales.
From the second half of this year, offshore wind projects are expected to restart, securing long-term revenue diversity. In Korea, the issuance of the Anma offshore wind and Wando Geumil offshore wind projects, which were delayed due to contract issues, is expected to occur within this year. In Taiwan, orders for the Weilanhai and Pengmiao Upscoping projects are anticipated. Upscoping refers to contracting volumes that local companies could not absorb with overseas companies.
Researcher Jeong Hye-jeong at KB Securities noted, "The order backlog for offshore wind projects has shrunk from 455.6 billion won in the fourth quarter of last year to 347.9 billion won in the first quarter of this year," and "it is expected to recover to around 900 billion won by the end of this year."
SK oceanplant is also planning to enter the operation, maintenance, and repair (MRO) business. It is pursuing the acquisition of a Maintenance and Repair Agreement (MSRA) for U.S. Navy vessels early next year, based on which it plans to secure 4 to 5 vessels annually.
Researcher Jeong said, "The MRO business is expected to enhance asset turnover in the long term as it can leverage new yards."