SK Ocean Plant Stock, A Growth Stock in Renewable Energy and Hydrogen Economy
SK Ocean Plant Stock, A Growth Stock in Renewable Energy and Hydrogen Economy
SK Ocean Plant (100090) is a construction company that operates businesses such as offshore wind and marine/land plant business, defense and public shipbuilding business, marine/architectural pipe business, etc. It is also actively involved in renewable energy and hydrogen economy fields. In this article, we will look at the advantages and prospects of SK Ocean Plant stock.
Advantages of SK Ocean Plant Stock
The advantages of SK Ocean Plant stock are as follows.
- A frontrunner in renewable energy business: SK Ocean Plant is playing a leading role in renewable energy business. Especially in the offshore wind field, it produces the world’s largest offshore wind substructure and has received many projects from domestic and overseas markets. It also designs, constructs, and operates renewable energy facilities such as solar power and biomass in the marine/land plant field. As the proportion of renewable energy increases, SK Ocean Plant’s orders and sales are expected to increase.
- Growth potential in hydrogen economy field: SK Ocean Plant also shows its presence in the hydrogen economy field. In particular, it has know-how in building and operating hydrogen charging stations, and is developing products such as hydrogen storage tanks and hydrogen chargers. It is also pursuing businesses such as hydrogen power plants and hydrogen fuel cells. As the hydrogen economy spreads, SK Ocean Plant’s business areas and profitability will expand.
- Synergy effects as a subsidiary of SK Group: SK Ocean Plant enjoys various synergy effects as a subsidiary of SK Group. In particular, it is working with group companies such as SK Innovation and SK Gas on renewable energy and hydrogen economy related businesses, and shares resources such as technology and capital. It can also strengthen its competitiveness in domestic and overseas markets by utilizing SK Group’s brand power and network.
Prospects of SK Ocean Plant Stock
The prospects of SK Ocean Plant stock are as follows.
- Expectation of performance improvement: SK Ocean Plant recorded sales of 219.699 billion won, operating profit of 18.572 billion won, and net profit of 20.48 billion won in the first quarter of 2023. This was a significant improvement from the weak performance due to the impact of COVID-19 and exchange rate fluctuations last year. From the second quarter onwards, the performance is expected to increase further due to the favorable conditions of renewable energy and hydrogen economy businesses and the recovery of overseas markets.
- Possibility of stock price increase: SK Ocean Plant stock is trading at 19,620 won per share as of June 2, 2023 market close, with a market capitalization of 1.445 trillion won. The foreign ownership ratio is 5.21%, and the PER is 37.41 times. The stock price has fallen by -1.90% in the last month. This reflects that the expectations for performance improvement and renewable energy and hydrogen economy growth have not been reflected yet. The stock price may rise further depending on SK Ocean Plant’s business expansion and results announcement.
Conclusion
SK Ocean Plant stock is a stock with high growth potential in renewable energy and hydrogen economy fields. It also enjoys synergy effects as a subsidiary of SK Group. It has high potential for performance improvement and stock price increase, so it is a good stock to buy now.