[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 23rd that GnCenergy Co., Ltd.(119850), “as Korea’s leading EPC (Engineering, Procurement, and Construction) specialist in emergency power generators, has entered an unprecedented growth cycle based on its dominant position in the data center infrastructure market,” adding that “the company possesses the potential for a valuation re-rating through new business ventures.” However, the firm did not provide an investment recommendation or a target price.

Mok Jin-won, an analyst at NH INVESTMENT & SECURITIES, said, “The supply cycle for large-scale data centers in Korea has gained full momentum due to favorable government policies and the entry of global hyperscalers,” adding “In particular, securing excess power (100–150% of power reception capacity) for high-power-density AIDCs (AI data centers) has become the standard, leading to a structural upward trend in the volume (Q) of emergency generators driven by increased power reception capacity,” he analyzed.
He further elaborated, “As the proportion of high-margin revenue from data centers surges, the company’s overall profitability will rise to a new level,” adding, “With the increasing adoption of gas turbines—which offer higher profitability than diesel—the operating profit margin is projected to reach around 20% by 2028.”
Furthermore, he emphasized, “With the expansion of the testbed—which had been a key bottleneck—scheduled for completion in March 2026, we anticipate a sharp conversion of the accumulated order backlog into revenue,” adding, “The company possesses the momentum for a qualitative leap in its business model, moving beyond simple equipment supply to the development of its own AIDC and entry into the commercial power generation market.”
Analyst Mok noted, “Leveraging our experience operating the Magok Edge Data Center, which boasts an operating profit margin in the 30% range, we are finalizing plans to develop a mega-scale AIDC with a capacity of 120–160 MW in Dangjin, and we are also planning exports to overseas markets such as Australia.” He added, “We believe the current stock price is undervalued, as it does not fully reflect the company’s structural growth and momentum. He added, “A re-rating is likely to occur within the year, coinciding with the announcement of large-scale new orders.”