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Photo = CSwind |
[Alpha Biz= Reporter Kim Sangjin] On Monday, Sangsangin Securities revised its target price for CS Wind from 83,000 KRW to 65,000 KRW, citing insufficient backlog in substructure orders and a slowdown in wind turbine installations in North America. The firm maintained a "Buy" recommendation. CS Wind's last closing price was 42,050 KRW.
The downward adjustment reflects concerns over declining performance at the company’s Denmark subsidiary, which holds a substructure order backlog of 763.7 billion KRW as of Q3 2024. Additionally, leading market research firms have downgraded their 2025 wind energy outlook for North America.
The low backlog is attributed to a gap in orders during a production normalization phase. Sangsangin Securities expects CS Wind's performance to recover starting in 2026.
The firm noted that the Vietnam subsidiary may leverage similar production processes for monopiles and towers, potentially outsourcing production to mitigate issues related to productivity.
However, short-term challenges remain. Analyst Kim pointed out that valuation levels for the wind energy sector have stabilized downward, and turbine manufacturers—CS Wind's direct clients—are struggling with profitability improvements. Furthermore, weaker-than-expected interest rate cuts may continue to pressure project margins.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
