In early trading on the 23rd, Sanil Electric is surging more than 11%. As positive assessments emerged in the securities industry that Sanil Electric's revenue related to renewable energy and data centers will increase, it is seen as drawing in investment funds.
As of 10 a.m., Sanil Electric is trading on the Korea Exchange at 166,100 won, up 16,500 won (11.03%) from the previous session.
Analysts in the securities industry said Sanil Electric's ability to generate revenue grew further based on last year's results.
Yoo Seong-man, an analyst at Leading Investment & Securities, said, "Sanil Electric's fourth-quarter revenue last year rose 31% on-year to 142.1 billion won, and operating profit increased 63.4% on-year to 55.0 billion won, marking the largest quarterly results ever," adding, "The key to this improvement was the surge in revenue related to renewable energy and data centers, which jumped about 130% on-year to 82.8 billion won."
He added, "New orders last year reached 566.0 billion won, and as of the fourth quarter, the United States accounted for 84.7%."
The outlook for Sanil Electric's future business viability is also positive. Sanil Electric is expanding its special transformer business for data centers and battery energy storage systems (BESS).
Yoo said, "The company is expanding its portfolio of special transformers for data centers, including signing a long-term contract worth 43.8 billion won to supply pad-mount transformers for U.S. data centers," adding, "In line with the trend of increased investment in cloud and artificial intelligence (AI) data centers in the United States through 2027, it is highly likely to translate into long-term revenue."
As of the fourth quarter last year, revenue from data centers and renewable energy accounted for more than 50% at Sanil Electric.
Sanil Electric is also securing additional production capacity, including expanding supplies of transformers for domestic BESS projects such as Jeju and for BESS and renewable energy projects in North America.
The fact that demand in the global power equipment market is high is also positive for Sanil Electric. Yoo said, "A global boom in which demand exceeds supply is continuing," adding, "The company is expected to achieve both top-line growth and improved profitability through expanded capital expenditure and higher utilization rates at expanded plants."