Century Iron & Steel Industrial (9958 TT, NT$104.50) - Long-term industry development trend remains unchanged despite developers gradually exiting

研报英文原文证据摘录

Century Iron & Steel Industrial (9958 TT, NT$104.50) - Long-term industry development trend remains unchanged despite developers gradually exiting

Taiwan Equity | Steel Industry

Company Snapshot

total terminated capacity exceeding 2GW. In addition to existing financial pressures, the

market is also concerned about the uncertainty of CPPA prices and returns, further

dampening investment willingness. The Ministry of Economic Affairs stated that the

released capacity will be redistributed in subsequent phases 3-4, with no change in policy

direction, and will continue to enhance development feasibility through credit guarantees

and system optimization. Overall, in the short term, financing and market environment

pressures have caused volatility in development pace and investment momentum,

resulting in a relatively conservative market atmosphere. However, with the global trend

toward energy transition becoming clearer, long-term demand for offshore wind remains

supported, and we believe the industry’s development direction remains unchanged.

How are we different?

Our latest FY26/27 EPS forecasts are NT$10.75 and NT$13.53, compared to the Bloomberg

consensus of NT$10.31 and NT$16.42, respectively.

Valuation, risks

Century Iron & Steel currently trades at 10-11x FY26F PE. Considering the company is a

key domestic supplier of underwater foundations and that capacity expansion is favorable

for capturing both localized and non-localized market share, we maintain Buy and target

price of NT$125 (11.6x FY26F EPS). We remain positive about its long-term offshore wind

power positioning. The main valuation risks are capital shortages and intensified

international competition affecting the progress of existing and development projects.

Figure 1: Quarterly EPS review Unit: NT$mn