[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 5th that it is maintaining its “Buy” rating on #SANIL ELECTRIC but lowering its target price from 280,000 won to 240,000 won.

Lee Min-jae, an analyst at NH INVESTMENT & SECURITIES, explained the rationale for maintaining the investment rating, stating, “This is due to expanding demand in Chonbang markets such as data centers, renewable energy, and energy storage systems (ESS), as well as the company’s ongoing strategy of production expansion.”
He added, “Third-quarter new orders totaled 278.9 billion won (+119% year-over-year); in addition to securing additional orders from Bloom Energy, the company secured its first related order from a data center client. The order backlog stood at 687.9 billion won (+67%), with both new orders and the order backlog reaching all-time highs,” he added, explaining, “The target price was lowered to reflect the increase in the cost of equity resulting from rising interest rates.”
On a consolidated basis, third-quarter revenue was 146 billion won (+10%) and operating profit was 44.7 billion won (+5%), with both revenue and operating profit falling significantly short of consensus estimates. This was due to a backlog of revenue to be recognized (78 billion won) resulting from shipping delays, as well as a decline in the won-dollar exchange rate and rising raw material prices.
The analyst added, “The shipping delays were caused by adverse weather conditions and are expected to be recognized mostly in the fourth quarter,” noting, “Since cost increases can be passed on to prices through phased contracts signed throughout the year, we expect to see a gradual improvement in profitability.”