[Infostock Daily= Reporter An Hoe Hyun] It is predicted that profitability improvement is expected for GnCenergy. The target stock price has also been raised.
Researcher Seo explained, "It is expected to benefit from the revitalization of the Untact market and the increase in IDC due to the fourth industrial revolution."
GnCenergy's target stock price has been raised from 6,700 won to 9,000 won. This is a 14-fold application of PER to the expected EPS 656 won in 2021. The multiple 14 times is the average of the domestic machinery industry.
The fourth quarter of last year was expected to generate sales of 46.1 billion won(-12.2% YoY) and operating profit of 16.5 billion won(+12% YoY). Researcher Seo also explained, "It will improve compared to the previous quarter, but it is not up to expectations due to project delays caused by COVID-19."
On the other hand, this year's performance is expected to be 202 billion won in sales and 12.5 billion won in operating profit. Operating profit is expected to surge from 5.4 billion won in 2020 to 12.5 billion won.
"This year, there will be 11 biogas power plants(a total of 8.2MW) nationwide that contribute more than 1 billion won in operating profit every year, and the sludge reduction project(About 21 billion won in business expenses) in Gyeongju, which was won in April last year, will also begin to recognize sales."
Subsidiary G-ENONE Energy's earnings are also expected to rebound. Although sales will remain sluggish at 29.5 billion won and operating profit at 500 million won in 2020 due to the influence of COVID-19, earnings are expected to improve from this year.
Reporter An Hoe Hyun ahh@infostock.co.kr
