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Sanil Electric Target Price Raised from 180,000 Won to 370,000 Won

On May 6, Shinhan Securities raised its target price for Sanil Electric from 180,000 won to 370,000 won, citing expectations of a sustained mid-to-long-term boom driven by expansion in the specialty transformer market. The investment opinion was maintained at 'Buy'.

Choi Seunghwan, a researcher at Shinhan Securities, explained, "We raised the target price by 105.6% compared to the previous level, reflecting changes in the forecast period (from 2026 to 2027), adjustments in the net profit attributable to controlling interests, and a change in the price-to-earnings ratio (PER) multiple (from 29 times to 45 times). Sanil Electric is set to fully enter the power value chain for data centers, making it possible to apply a high multiple comparable to global peers."

In the first quarter of this year, Sanil Electric reported revenue of 150.3 billion won, up 52.1% year-on-year, and operating profit of 55.5 billion won, up 47.9% from the same period last year. New orders reached 179 billion won. Researcher Choi noted, "Sales of specialty transformers for renewables and energy storage systems (ESS) surged by 113.4% year-on-year to 106.7 billion won, driving strong growth," and added, "The power grid segment is expected to rebound in the second half of the year after inventory depletion."

On April 30, Sanil Electric announced that it had signed a contract with Bloom Energy to supply transformers for U.S. data centers, with the contract amount totaling 50.3 billion won. Researcher Choi analyzed, "This is the company's largest-ever single sales disclosure and its first meaningful order from a data center power developer. Rather than a one-time sale, Sanil Electric has secured 'partner' status, and the supply price is about 1.5 times higher than that for renewables, making it a high value-added product." He added, "In addition to Bloom Energy, the company has received product inquiries from more than 10 North American data center developers and is planning long-term partnerships with the top two to three of them."

There is an opinion that attention should be paid to the expansion of the 154kV ultra-high-voltage transformer portfolio. Researcher Choi stated, "This is at the request of existing customers such as GE, Siemens, and Toshiba. In addition to distribution transformers, the company plans to supply entry-level ultra-high-voltage transformers for renewable power generation sites. Half of the idle land at the second plant will be dedicated to a new production line, with production set to begin in 2028. Current production capacity stands at around 800 billion won, and with expanded operations, the company could handle over 1 trillion won."

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