{"id":332779,"date":"2025-06-05T01:25:01","date_gmt":"2025-06-04T17:25:01","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332779"},"modified":"2025-06-05T01:25:05","modified_gmt":"2025-06-04T17:25:05","slug":"stock-in-focus-acen-corp-acen-5-june-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-acen-corp-acen-5-june-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: ACEN Corp. (ACEN) – 5 June 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>ACEN<\/td><\/tr>
Company Name<\/strong><\/td>ACEN Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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As mentioned below, a key concern that we have with offshore wind is the difficulty in connecting to the grid. Even onshore wind projects and ground-mounted solar have difficulty securing a connection, so we can only imagine the challenges of connecting a wind project that could be located several kilometers offshore. However, it must also be noted that the project has already secured a connection agreement with NGCP and Green Lane status from the BOI which should speed up the process. Further, we are optimistic on the partnership with CIP and the expertise that they bring to the table. Nonetheless, with the project not expected to generate revenues until at least 2028 and with offtake agreements yet to be reached, we don\u2019t consider this development material to ACEN as of now. <\/p>\n\n\n\n

It is also a bit of a disappointment that ACEN only took a 25% stake, which is a smaller minority stake than we have hoped. As such, it does not affect our Target Price of P3.10 and we remain a HOLD on the stock.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

ACEN takes 25% stake in CamSur offshore wind project<\/strong><\/p>\n\n\n\n

ACEN disclosed that it has signed a definitive agreement to take a 25% stake in the $2.0-Billion pre-development offshore wind project to be undertaken by Copenhagen Infrastructure Partners (CIP) in San Miguel Bay, Camarines Sur with a projected generation capacity of 1-GW. The amount involved in the transaction was not disclosed. The partner\u2019s credentials. CIP is a Danish investment firm specializing in infrastructure investments, particularly wind power, with a project pipeline of 120-GW. They have already completed two offshore wind projects \u2013 the 402-MW Veja Mate offshore wind farm in Germany, and the 804-MW Vineyard Wind Farm in Massachusetts, USA \u2013 and have two other offshore wind projects in the pipeline \u2013 the 2.2-GW Star of the South in Australia and the 589- MW Changfang and Xidao project in Taiwan.<\/p>\n\n\n\n

The CamSur project<\/strong><\/p>\n\n\n\n

The CamSur project secured Green Lane status from the Bureau of Investments (BOI) in February 2024, a Certificate of Energy Project of National Significance from the Department of Energy (DOE) and a pre-development Environmental Compliance Certificate from the Department of Environment and Natural Resources (DENR) in October 2024, as well as a grid connection agreement with NGCP in February 2025. The project is currently in the pre-development stage and is targeted for completion by 2028. It is expected to participate in the fifth round of Green Energy Auction (GEA-5) which is slated to take place in 3Q25.<\/p>\n\n\n\n

Offshore wind in the Philippines<\/strong><\/p>\n\n\n\n

The World Bank estimates that the Philippines has over 178-GW of offshore wind potential, which is significantly larger than the estimated 70-GW onshore potential as the geography of our islands restricts onshore wind to mountain areas and thin strips of coastal areas. However, it comes with its unique challenges, like the heightened risk of damage from typhoons, technical difficulties in connecting to the grid, and logistics issues. The cost of producing offshore wind is also quite high compared to other RE sources, although the DOE projects that the cost will decline over time as technology becomes more advanced and widely available.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>