On the 8th, NH Investment & Securities projected that Doosan is expected to see robust growth in its own business due to the full-scale revenue generation from new customers in the institutional sector this year. As a result, the investment recommendation remains "buy" while the target price has been raised to 330,000 won, up 26.9%. In the previous transaction, Doosan closed at 296,500 won.
According to NH Investment & Securities, Doosan is seeking growth based on three pillars: Clean Energy, Smart Machine, and Advanced Materials along with its affiliates. Plans for restructuring the group business structure for efficiency in its business portfolio have ultimately been scrapped. Considering recent movements to amend commercial law or capital markets law, the likelihood of reinitiating business restructuring is low.
Kim Dong-yang, a researcher at NH Investment & Securities, noted, "Doosan maintains a 68.2% equity stake in Doosan Robotics." He added, "Considering the possibility of cashing out some equity in the future, expectations include the presentation of a future growth strategy that meets the value-up program, improved capital efficiency, and strengthened shareholder returns."
Doosan's revenue for the fourth quarter of 2024 is estimated to be 4.5369 trillion won, a 14% decrease compared to the same period last year, while operating profit is projected to increase by 24% to 331.1 billion won. Despite being an off-peak season, profitability in its own business is expected to further improve due to the full-scale production of artificial intelligence (AI) accelerator materials stemming from new customers in the institutional sector.
Research Institute Kim stated, "With the potential expansion of product lines, revenue in the institutional sector is expected to grow by 30% this year." He also mentioned, "Adjustments will be made to the target price based on the fluctuation of the stock price of listed subsidiaries, upward revisions in the performance outlook for its own business, the resolution of uncertainties regarding business restructuring, and the potential utilization of some equity in Doosan Robotics."