April 26, 2024

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[THE INVESTOR] EWK’s earnings will jump significantly as it enters the Turkish independent power generation market, said SK Securities on Sept. 20. The securities firm did not suggest a recommendation or target price. 

Its subsidiary EWK Egesim Geothermal Energy, in which it owns 75 percent stake, has signed a contract with the provincial government of Aydin, becoming the first Korean firm to tap into the geothermal IPP business in Turkey, said analyst Seo Chung-woo. 

It will be able to sell electricity from the second half of 2020 until September 2041, with an option for 10-year extension. The yearly revenue will reach 10.3 billion won with operating profit of 3.8 billion won. This surpasses its annual earnings so far, and as the project could reap over 10 billion won in annual revenue with 40 percent operating profit ratio, EWK’s stock price is likely to be rerated, forecast the analyst. 

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