Mirae Asset Securities noted on the 25th that there is a polarization in the onshore and offshore wind power market and that the offshore wind power business is expected to decline further. It has revised its target stock price down from 62,000 won to 60,000 won while maintaining its investment opinion of 'buy'. The closing price of CS WIND on the previous trading day was 49,050 won.
Mirae Asset Securities forecasts that CS WIND's operating profit for the second quarter of this year will be 80.2 billion won. This level corresponds to the securities industry's forecast of 80 billion won. Researcher Jin-ho Lee of Mirae Asset Securities explained, "The reason for lowering the estimate from the previous 105.8 billion won is due to a decrease in the estimated operating rate of the tower factory, which also slightly lowered the profitability of the offshore institutional sector."
Tower factory sales are expected to decline by about 34% compared to the previous quarter, reaching 453.5 billion won. The first quarter of this year reflected the quantities that were carried over from the fourth quarter of last year, and there was a seasonal impact as well. The operating rate of the U.S. factory is also expected to decrease the sales amount for the same reasons, with the Advanced Manufacturing Tax Credit (AMPC) projected to drop to about 18.7 billion won from the previous quarter's 40.6 billion won.
Due to the demand effect resulting from the amendments to the U.S. Large-Scale Tax Cut Law (One Big Beautiful Bill Act - OBBBA), including cuts to the U.S. wind production tax credit (PTC) subsidy, the negotiating power for land-based wind tower prices in the U.S. is expected to increase next year. Developers must start construction by July 4 of next year to receive the PTC subsidies in the U.S.
The researcher stated, "There will be more orders to accelerate construction quickly until the first half of next year," adding that "the future performance of offshore wind power is expected to slow down from the fourth quarter."
He further remarked, "For the performance to recover next year, additional orders are essential, and the key will be how much the strength of land-based wind towers can compensate for the weakness of offshore wind power."