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CS Wind.(photo=CS Wind) |
[Alpha Biz= Reporter Kim Sangjin] NH Investment & Securities maintained a "Buy" rating and a target price of 63,000 KRW for CS Wind on December 13, citing expectations of a long-term shortage in wind turbine tower supply.
The firm noted that while the reduction in offshore wind projects by global developers presents a risk factor, the orders for offshore wind turbines from CS Wind's customers, wind turbine manufacturers, are still ongoing. NH Investment & Securities also pointed out that a tower supply shortage could occur in the U.S. onshore wind sector as early as 2026.
CS Wind has been supplying wind turbine towers since May this year under a contract with Siemens-Gamesa, signed in November 2022, which will continue until December 2030.
NH Investment & Securities emphasized that CS Wind is currently producing towers with a diameter of over 8 meters due to the trend of larger turbines. The complexity of manufacturing these larger towers has increased, and the required equipment and land area have also expanded, raising both the production difficulty and the barriers to entry.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
