DS Investment Securities raised its target price for CS Wind (KOSPI: 112610) from 81,000 won to 88,000 won on 11th September, while maintaining a "buy" recommendation. Based on the closing price of 51,100 won on 10th September, the implied upside stands at 72.2%. The target was derived by applying a price-to-earnings multiple of 20.7 times — in line with the 2026 consensus valuation for leading European turbine manufacturers — to the company's forecast earnings per share of 4,242 won for that year.
Policy winds shift in America
The primary rationale for the upgrade is a marked improvement in the American wind-energy regulatory climate. The Trump administration had frozen approvals for new wind projects, but in June it voluntarily dropped its appeal in the resulting litigation. In August, the Department of Defence lifted a moratorium on reviews of onshore wind projects, allowing roughly 30 gigawatts of capacity to re-enter the permitting process. A substantial cloud of regulatory uncertainty has thus lifted.
Forecasts for American onshore wind installations have also brightened considerably. As recently as March, industry projections pointed to a contraction in new installations between 2027 and 2029; by July, updated data indicated that capacity additions would in fact increase over that period. Analysts attribute part of this improvement to surging electricity demand driven by the proliferation of artificial-intelligence data centres, which is boosting the outlook for wind power alongside other generation sources.
A near-monopoly by default
CS Wind is also benefiting from a reshaping of the competitive landscape. As global wind-energy companies have come under financial pressure — including a blade manufacturer in the United States that has entered insolvency proceedings — rivals have been retreating from the wind-tower business. The result is that CS Wind now enjoys what amounts to a dominant position in the American onshore wind-tower market.
Earnings outlook
DS Investment Securities forecasts CS Wind's consolidated revenue for 2026 at 2.9116 trillion won, down 0.7% year on year, and operating profit at 303.2 billion won, down 5.4%. The brokerage expects growth in the tower segment to offset a decline in offshore wind foundations, keeping overall profitability broadly stable. The operating margin is projected at 10.4%.
On a quarterly basis, the second quarter of 2026 is expected to be particularly strong, with revenue of 686.4 billion won and operating profit of 86 billion won, implying a margin of 12.5% — the highest quarterly figure in recent memory.
In terms of the broader earnings trajectory, CS Wind's revenue surged from 1.52 trillion won in 2023 to 3.073 trillion won in 2024, a jump of 102%, driven by a concentration of turbine-maker orders and strong demand from European and American markets. Operating profit rose from 104 billion won to 255.5 billion won over the same period. Revenue is expected to dip modestly in 2025 before growth resumes in 2026.
Share price recovery
The stock has staged a notable recovery. CS Wind's 52-week high is 79,400 won; its low is 34,500 won — a wide range that reflects how volatile sentiment towards wind-energy companies has been. The share price has risen 15.8% over the past month and 25.9% over three months, broadly tracking the recovery in European turbine manufacturers such as Vestas and Nordex, whose shares have risen as much as four to five times their January 2025 levels.
Risks worth noting
Investors should nonetheless weigh several risks. The Advanced Manufacturing Production Credit (AMPC), an American tax incentive that has supported CS Wind's profitability, is due to expire at the end of 2027, raising the prospect of margin pressure thereafter. Net profit attributable to controlling shareholders is estimated to plunge from 142.3 billion won in 2024 to just 34.7 billion won in 2025, partly owing to one-off losses expected in the fourth quarter — a reminder that earnings volatility remains a significant source of uncertainty.
The revised target of 88,000 won also falls short of the 97,000 won that DS Investment Securities set in October 2024, before subsequently cutting it as the share price fell. The repeated gap between stated targets and actual prices is a caution worth bearing in mind.
CS Wind has a market capitalisation of approximately 2.1420 trillion won (based on ordinary shares). Foreign investors hold a 16.9% stake. The largest shareholder is founder Kim Seong-gwon and associates, with a combined 38.9%, while the National Pension Service of Korea holds 10.0%.