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IBK Securities Initiates Coverage on GNC Energy, Citing AI Data Center Tailwinds
Electronic Technology · Electronic Components · yonhap_finance · 2026-09-08
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IBK Securities has initiated coverage on GNC Energy with a 'Buy' rating, highlighting the company's strong position in the AI data center emergency generator market.
What Happened
Coverage Initiation: IBK Securities has launched research coverage on GNC Energy, setting a 'Buy' rating and a target price of 70,000 KRW. Analysts highlight the company as a primary beneficiary of the rapidly expanding AI data center infrastructure market.
Market Opportunity: Major AI data center projects planned through 2029 are expected to drive demand for emergency power systems, with a total market potential estimated at 4.2 trillion KRW. GNC Energy currently holds a 70% market share in this segment, positioning it to capture significant future orders.
Profitability Outlook: The company is expected to see improved margins due to the higher profitability of data center-specific emergency generators and the increasing preference for gas turbine systems. This shift is projected to drive consistent growth in both new orders and overall revenue over the coming years.
Order Backlog Growth: As of the first half of the year, GNC Energy reported an order backlog of 414.7 billion KRW, with an additional 207.2 billion KRW in new contracts secured since July. Projections suggest that annual new order intake could reach 1 trillion KRW by 2028.