April 25, 2024

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[THE INVESTOR] Woongjin Energy will not be substantially affected by the US safeguards against solar battery products, said Hana Financial Investment on Sept. 26, maintaining a “buy” recommendation and 13,600 won (US$11.98) target price. 

Even if the US does take action, tariffs are likely to be imposed on modules only since, explained analyst Kim Du-hyeon.

Woongjin Energy, a joint venture with US SunPower, has secured a number of major US clients and might even gain from the protective measure as it will strengthen US module manufacturers, noted the analyst. 

The safeguards will affect Korean cell and module companies, and supply to Hyundai Heavy Industries Green Energy, Woongjin’s main domestic client that accounts for 15 percent of its revenue, will inevitably be slower, but as the measures will take effect in February next year, it will not have a problem securing another client, said Kim.

This year’s revenue will reach 256.8 billion won with operating profit of 10.6 billion won, estimated the analyst, adding that it can attract new clients and the anticipation for earnings improvement should be an opportunity to purchase. 

By Hwang You-mee (glamazon@heraldcorp.com)