[Click e-Stock] "DASCO's Solar Orders Expand... Renewable Energy Policy Shifts in Focus After U.S. Midterms"

Independent research firm Value Finder said on October 23 that it is time to focus on DASCO's expanding solar power project wins. It said increased orders in the Energy Business Division could drive revenue growth and ease the burden of fixed costs, leading to improved performance over the medium to long term. Changes in renewable energy policy following the U.S. midterm elections were also cited as a key variable for the business.

DASCO is an energy company that handles every stage of solar power projects, from design and construction to engineering, procurement and construction (EPC), as well as operations and maintenance (O&M). As of September 2026, it had completed 120 renewable energy construction projects and 140 O&M projects, and had accumulated experience in projects totaling more than 1.4 gigawatts (GW).

In the first half of 2026, revenue was divided among the Energy Business at 29.2%, the Social Overhead Capital (SOC) Business at 29.1%, the Building Materials Business at 24.3%, and the Steel Products Business at 17.4%. Revenue for the first half was KRW 139.9 billion, and the company posted an operating loss of KRW 9.8 billion.

Ji Hu, a researcher at Value Finder, said, "As of September 2026, orders in the Energy Business Division stood at approximately KRW 210 billion, and the division continues to post solid growth." Ji added, "With the division's break-even point (BEP) at approximately KRW 110 billion, increased revenue from more orders and a reduced fixed-cost burden are expected to contribute to improved company-wide profitability."

New orders are continuing to increase. In July 2026, DASCO secured an EPC contract worth approximately KRW 53.2 billion, equivalent to 70% of the total project cost of approximately KRW 76 billion, for the 72.98-megawatt (MW) Shinan Solar Power Project. By also taking responsibility for operating and maintaining the plant for 20 years after its completion, the company secured a long-term source of O&M revenue in addition to construction revenue.

Researcher Ji said, "Contract negotiations are also underway for the 35-MW second phase of the Shinan Solar Power Project. If the contract is finalized, it is expected to contribute to securing stable earnings through 2027."

The company is also expanding its medium- and long-term business base. It is currently developing solar power projects with a capacity of approximately 1.0 GW and aims to generate approximately KRW 1.6 trillion in EPC revenue over the next five years, along with additional O&M revenue.

Changes in U.S. renewable energy policy were also cited as a variable. Researcher Ji said, "If the Democratic Party secures a majority in the House of Representatives in the U.S. midterm elections on November 3, 2026, it could have a positive impact on expanding investment in renewable energy."

Ji added, "Given the company's experience with a diverse range of projects, from the Saemangeum land-based solar project to the Goheung Bay floating solar project, it is expected to benefit from increased investment in the sector."

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