Sanil Electric (062040) Investor presentation summary

Investment highlights

• Achieved revenue CAGR of 72.7% and operating profit CAGR of 502% from 2021 to 2024, with 2024 revenue at 334 billion KRW and operating profit margin at 32.7%.

• Main customers are in growth industries: US power grid, renewable energy, ESS, and data centers.

• 90.3% of sales are exports, mainly to the US, Europe, and Japan, with major clients like GE, Siemens, and TMEIC.

• Sufficient production capacity of 600 billion KRW per year, with two factories operating at high utilization rates.

• CEO emphasizes a shareholder-centered, long-term business approach.

Business performance and sales portfolio

• Sales grew from 64.8 billion KRW in 2021 to 334 billion KRW in 2024, with operating profit rising from 5 to 1,092 billion KRW.

• Sales portfolio is diversified across transmission/distribution grids, renewable energy, and special transformers.

• Major customers include US utilities and global industrial companies; product mix is shifting toward higher-value pole/pad mounted transformers.

Market trends and demand drivers

• Global transformer demand is rising due to aging power grids in the US and Europe, with a supercycle of replacement underway.

• Renewable energy expansion and government policies (RPS, FIT, FIP) are driving transformer demand.

• Data centers and EV charging infrastructure are rapidly increasing, further boosting transformer needs.