[Edaily Reporter Shin Ha-yeon ] On the 27th, independent research firm Value Finder highlighted the potential for business diversification at S-Energy CO., LTD.(095910), driven by an expansion in domestic solar power plant orders and entry into Japan’s artificial intelligence (AI) data center power market. With trading set to resume on the 28th following a stock consolidation, the firm noted that expectations for renewable energy policies stemming from the U.S. midterm elections could also influence investor sentiment. No specific investment opinion or target price was provided.

Ji-hoo, a senior researcher at Value Finder, stated in a report released that day, “If the Democratic Party secures control of the House of Representatives, it could have a positive impact on the renewable energy investment environment,” adding, “As policy expectations stemming from the midterm elections may come to the fore, it is necessary to pay attention to the potential for improved investor sentiment in the solar power industry coinciding with the resumption of trading.”

S-Energy CO., LTD. is a solar power specialist established in 2001 and listed on the KOSDAQ market in 2007. The company focuses primarily on manufacturing solar modules and constructing solar power generation systems, and has recently been expanding its business scope to include fuel cells and energy storage systems (ESS).

In particular, the company is accelerating its business expansion in the Japanese market. Last July, it signed a main contract worth approximately 7.2 billion won with Japan’s Kamei for a solar repowering project, and recently, together with its hydrogen fuel cell subsidiary S-Prism, it signed a memorandum of understanding (MOU) with EFHD, a company listed on the Tokyo Stock Exchange.

This agreement aims to establish a standalone power supply system that combines fuel cells and ESS. The companies plan to evaluate the feasibility of applying S-Prism’s fuel cell power generation system to AI data centers in Japan and to collaborate on obtaining technical certifications for commercialization.

Researcher Ji commented, “As this also includes the possibility of future capital partnerships, such as equity investments, we expect this to secure a business foundation for expanding our solar power business in Japan and entering the AI data center (AIDC) market.”

In South Korea as well, orders for solar power projects continue to come in, primarily from state-owned power generation companies. S-Energy CO., LTD. announced on the 20th that it had signed a contract with Korea Western Power to supply solar power generation equipment. The company’s share of the project is approximately 11 billion won, and it will be responsible for the purchase, delivery, installation, and construction of solar power generation equipment to be installed on idle land in Sejong and across the company’s sites, as well as providing support for permits and approvals.

Previously, in March, the company secured a contract for Korea Southern Power’s Jeju Gashiri solar power project (11.5 MW). Analysts note that by consistently securing design, procurement, and construction (EPC) projects with state-owned power generation companies, the company is establishing a favorable foundation for competing for additional contracts in the future.

Researcher Ji explained, “As we continue to accumulate experience in executing public power generation projects, we expect this to have a positive impact in future competitions for new projects from public power generation companies.”

However, restoring financial performance remains a challenge. Last year, S-Energy CO., LTD.’s consolidated revenue was 102.4 billion won, a 30.7% decrease from the previous year, and the company recorded an operating loss of 18.7 billion won. The company continued to post losses in the first half of this year as well, with revenue of 50.6 billion won and an operating loss of 10.3 billion won. By business division, the solar power sector accounted for the highest share of revenue in the first half, at 71.0%.

Consequently, the key issue going forward will be whether the expansion of new orders translates into actual revenue growth and improved profitability. As the company’s entry into Japan’s AI data center power market is currently in the stage of exploring partnerships and commercialization, it will be necessary to assess concrete business results.

Meanwhile, S-Energy CO., LTD.’s trading has been suspended due to a stock consolidation and is scheduled to resume on the 28th. Analyst Ji noted the potential for increased market interest in the solar industry as expectations for renewable energy policies surrounding the U.S. midterm elections align with an expansion of new orders both domestically and internationally.