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CS Wind.(photo=CS Wind) |
[Alpha Biz= Reporter Kim Minyoung] EBEST Investment & Securities lowered its target stock price by 14% on the 10th, saying CS Wind's first-quarter earnings were far below market expectations.
CS Wind announced on the previous day that it temporarily turned into a deficit with a consolidated operating loss of 9.5 billion won in the first quarter.
This is far below the consensus (43.6 billion won) and estimates of eBEST Investment & Securities (42.2 billion won).
eBEST Investment & Securities explained, "This shock was caused by the subcontractor of Offshore Substation (OSS) project of Offshore Shore Corporation, which stopped production due to rising costs and labor costs."
"We are in the process of raising unit prices with customers and we expect to negotiate smoothly," eBEST Investment & Securities said. "If the unit price is raised, the profit of the difference could be temporarily reflected in the second quarter, but if it breaks down, we cannot rule out the possibility of a deficit similar to this quarter."
eBEST Investment & Securities maintained its investment opinion "buying", saying, "The existing outlook for mid- to long-term earnings growth remains unchanged."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
