[Click e-Stock] "Taewoong Achieves World-Class Competitiveness in Offshore Wind Power... Entering Growth Cycle"

IBK Investment & Securities Sets Taewoong Target Price at 45,000 Won

On September 9, IBK Investment & Securities initiated coverage of Taewoong, highlighting its offshore wind power competitiveness, with a new target price of 45,000 won and a 'Buy' investment rating.

Taewoong operates in the forging industry, processing metals. The forging industry experienced significant growth during the heavy industry boom of the 2000s, but as orders for heavy industry declined and fixed costs increased, the growth of China's steel industry further exacerbated the situation. Forging companies that failed to secure sufficient demand ultimately went bankrupt.

Despite such a downturn in the forging sector, Taewoong survived by focusing on the energy sector, such as nuclear power and offshore wind power, where it is difficult for Chinese companies to enter. Yoo Changkeun, a researcher at IBK Investment & Securities, stated, "Taewoong is expanding its order volume through large-scale facility upgrades and is becoming an irreplaceable partner by winning orders for core components."

IBK Investment & Securities positively evaluated Taewoong's achievements in offshore wind power. Analyst Yoo commented, "Through proactive facility investment and the accumulation of order references, Taewoong has secured world-class competitiveness in the global flange market for offshore wind power."

This is expected to apply similarly to its nuclear business. Orders for forged components for small modular reactors (SMRs) have expanded from secondary equipment last year to primary equipment this year, and contracts for used nuclear fuel storage and transportation casks are also increasing. Mitsubishi Heavy Industries has even selected Taewoong as its development partner for rotor shafts, a key component in its gas turbines.

IBK Investment & Securities, in initiating coverage on Taewoong, commented, "The announcement that Taewoong will increase production capacity by 30% marks a turning point, indicating the end of the downturn in the forging industry and the start of a full-fledged growth cycle." The firm added, "Explosively growing demand for offshore wind power in Europe over the next 10 years is expected to bring further stable results through additional investments, laying the foundation for Taewoong to gain an early foothold in the nascent nuclear and SMR markets."

This content was produced with the assistance of AI translation services.