Korea Investment & Securities Co. on the 4th raised its target price for Sanil Electric to 270,000 won from 210,000 won, saying expectations for increased transformer supplies for U.S. data centers remain intact. Sanil Electric's closing price in the previous session was 225,000 won.
Jang Nam-hyun, an analyst at Korea Investment & Securities Co., said, "On Apr. 30, after signing a transformer supply contract with Bloom Energy, the stock rose 46.6%, but following a correction since May 11, the current share price is down 30.6% from the peak," and noted, "However, the momentum from joining the data center equipment value chain remains valid."
In particular, he emphasized that with the ongoing transformer supply shortage, the market has entered a long-term supply agreement (LTA) phase. He said, "As the transformer supply shortage deepens, data center customers are asking power equipment operators to secure long-term supply slots," and projected, "Repeat orders will occur structurally after vendor registration."
Accordingly, 2026 revenue is expected to be 681 billion won and operating profit 252.3 billion won. These represent increases of 35.7% and 41.3%, respectively, from a year earlier. Over the mid to long term, operating profit is projected to expand to 461 billion won in 2028. As a result, the 2025–2028 compound annual earnings per share (EPS) growth rate is estimated at 35.1%.
Accordingly, the target price was derived by applying 2027 EPS of 9,183 won and a target price-earnings ratio (PER) of 29 times. The target PER reflects the average 2027 PER of global power equipment companies.