[Edaily Reporter Shin Ha-yeon ] On the 22nd, SANGSANGINVESTMENT&SECURITIES maintained its “Buy (BUY)” investment rating for SeAH Steel Holdings Corporation(003030), citing positive assessments of the improving business conditions for oil country tubular goods (OCTG) in the U.S. and the long-term growth potential of its UK offshore wind monopile business. However, the firm lowered its target price from 250,000 won to 205,000 won.

Kim Jin-beom, an analyst at SANGSANGINVESTMENT&SECURITIES, stated in a report released that day, “We have adjusted SeAH WIND’s enterprise value from 2.1 trillion won to 1.9 trillion won, conservatively factoring in the stabilization of operations and the ramp-up period for the UK offshore wind monopile business,” adding “However, considering SeAH WIND’s long-term business potential and the improving market conditions for OCTG in the U.S., the current price-to-book ratio (PBR) of 0.24x is attractive from a buying perspective,” he added.

The firm cited improved profitability in the U.S. steel pipe business as a key investment point for SeAH Steel Holdings Corporation. SANGSANGINVESTMENT&SECURITIES raised its earnings estimates for SeAH Steel Corporation and SeAH Steel USA by 35.9% and 28.6%, respectively, to reflect the rise in North American OCTG spot FOB prices. Accordingly, it projected consolidated operating profit for the second quarter at 21.4 billion won, higher than previous estimates. Analyst Kim noted, “As U.S. drilling activity is expected to enter a full-fledged recovery in the second half of the year, the profit improvement trend at major production subsidiaries is projected to continue.”

The UK offshore wind business was assessed as a medium- to long-term growth driver despite short-term volatility. Although the contract value for the Norfolk Vanguard East project was recently reduced from 7115억 won to 2278억 won, SeAH Wind is reportedly in discussions regarding early delivery for the project and is also preparing for additional projects.

Researcher Kim assessed, “The UK government is positioning offshore wind as the cornerstone of its clean energy system by 2030,” adding, “Considering that the company is the only local manufacturer of XXL monopiles, its long-term growth potential remains a positive area to watch.”

In fact, Seah Wind operates an XXXL-class monopile production facility with an annual capacity of 400,000 metric tons in Teesside, UK, where approximately 1.5 trillion won has been invested. The UK government has set a target to expand offshore wind capacity to 43–50 GW by 2030, creating a need for large-scale new investments.

Researcher Kim noted, “From a project perspective, the logistical risks associated with physically massive monopiles are an issue that cannot be overlooked, and since turbine sizes are expected to increase in line with the expansion of generation capacity, we believe the benefits of securing a local offshore wind monopile supply chain are clear from the perspective of offshore wind projects.” He added, “Given the long-term growth potential and policy advantages of the UK’s offshore wind monopile substructure manufacturing sector, Seawind’s EBITDA is projected to reach 222.4 billion won in 2029,” he noted. He also added, “Assuming an average sector multiple of 10.5x for the domestic and international offshore wind industries and a weighted average cost of capital (WACC) of 6.1%, Seawind’s enterprise value is calculated at 1.9 trillion won.”