"Iljin Power, Beneficiary of the AI Electricity Infrastructure Supercycle" [Click e-Stock]

On June 16, Research Alarm stated that Iljin Power is beginning to benefit significantly from the AI-powered electricity infrastructure supercycle and the effects of proactive business diversification. The firm set its target price at 22,200 won.

Choi Seong-hwan, a researcher at Research Alarm, said in a report released that day, "With the expansion of industries such as AI data centers and semiconductor facility expansions, which are driving a rapid surge in electricity consumption, the importance of stable power supply is coming to the forefront. Structural benefits from rising electricity demand are expected."

Iljin Power is a company specializing in the maintenance of power plant facilities, focusing on regular and preventive maintenance of power plants. It provides ongoing maintenance services for major domestic thermal, combined-cycle, and nuclear power plants, and has established a stable order base thanks to high barriers to entry. The company's main business is the power generation sector, which is expected to account for 45.7% of this year's projected sales. Other business areas include chemical and plant (28.7%), fuel cells (13.4%), nuclear power (10.7%), and new growth sectors (1.5%).

Researcher Choi analyzed, "The fuel cell power generation business is expected to post the highest growth rate this year as the effect of new power plants coming online is fully reflected. The expansion of global investments in small modular reactors (SMRs) and domestic policies supporting extended operation of nuclear power plants are increasing growth potential for the nuclear maintenance and equipment business, making it a noteworthy mid- to long-term growth driver."

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