Doosan Heavy’s offshore wind farm on Jeju (Yonhap)
SEOUL, Oct. 6 (Korea Bizwire) — Shares of solar and wind power companies in South Korea have more than doubled thus far this year, the local bourse operator said.
The Korea Exchange announced that on the basis of closing prices on Sept. 29, the share prices of the 11 companies recommended by more than three securities brokerages as industry-leading solar or wind power companies registered growth of 102 percent on average compared to the end of last year.
Shares of SamKang M&T Co., for example, jumped by 288 percent during this period, while those of CS Wind Corp. rose by 161 percent. Samkang M&T specializes in the construction of wind power structures, while CS Wind is a producer of offshore wind towers.
The two companies, known to be global leaders in their respective business areas, recently formed a strategic alliance.
CS Bearing Co., a subsidiary of CS Wind, and Hanwha Solutions Corp., a specialist in solar cells and modules, also saw their stock prices rise sharply.
The primary factor behind the surge in the share prices of solar and wind power companies is the ever-rising adoption of low carbon growth policies worldwide.
Given that it is inevitable that most countries will shift to renewable energy in the future, some analysts have recommended taking a long-term approach.
“The world is moving towards cultivating low carbon industries as a way to reduce carbon emissions,” said Han Byung-hwa, an analyst at Eugene Investment & Securities.
“Keeping this in mind, the related companies can be seen as catching up with the global trend from a mid and long-term perspective.”
Kevin Lee (kevinlee@koreabizwire.com)
