NH Investment & Securities said on the 23rd that Sanil Electric is expected to benefit as demand for transformers increases with rising renewable energy demand due to the Iran war. It maintained a Buy recommendation and raised the target price to 250,000 won from 220,000 won. Sanil Electric's previous session closing price was 205,000 won.
Lee Min-jae of NH Investment & Securities said, "As demand for renewable energy increases due to the war, demand for special transformers is also expected to rise," and added, "As with the Russia-Ukraine war, performance improvement by wind and solar companies is expected to be limited even after the United States-Iran war, while Sanil Electric is likely to expand profit."
The researcher assessed that Sanil Electric has a product lineup capable of supplying transformers suitable for every voltage within power grids built around renewable energy. The researcher also explained that, with a stable customer base and profitability secured, the company is positioned to expand profit in line with top-line growth.
Meanwhile, GE Vernova, a key customer of Sanil Electric, acquired the remaining 50% equity of ProlecGE in January and presented 2028 sales guidance of $4.2 billion (about 6.2139 trillion won). That is more than 30% higher than last year.
The researcher said, "At the request of renewable energy customers, Sanil Electric plans to establish production facilities for 154kV ultra-high-voltage transformers," and added, "Even if phased expansion of medium- and low-voltage transformers encounters setbacks, entry into ultra-high-voltage transformers could offset this."
In particular, it was analyzed that, by securing a 154kV ultra-high-voltage transformer product lineup, the company will be able to participate in all projects from generation to transmission and distribution in renewable energy projects.
The researcher said, "Major solar projects in the United States are up to 60 km from the backbone transmission network or end users," and added, "Assuming the use of 154kV transformers, the loss rate is estimated to be within 5%."