The Liner Plate (CLP) for containment of the reactor building produced by BHI. It is installed on the inner walls of the containment building at the nuclear power plant and serves as a protective shield against radiation leakage. / Courtesy of BHI

IBK Securities predicted on 4th that BHI's revenue from the heat recovery steam generator (HRSG) sector would increase in the second half of this year, driving performance growth. It raised its target price from 43,000 won to 62,000 won while maintaining a 'buy' investment opinion. The closing price of BHI on the previous trading day was 53,800 won.

In the second quarter of this year, BHI recorded revenue of 169.3 billion won and operating profit of 20.4 billion won. These figures represent increases of 96.2% and 240.9%, respectively, compared to the previous year. HRSG revenue surged by 186%, driving the overall company performance. As of the end of June, the order backlog totaled 2.33 trillion won, up 180.9% from last year.

The growth in the HRSG sector is expected to continue in the second half. Kim Tae-hyun, a researcher at IBK Securities, noted, "As HRSG revenue recognition progresses for Saudi projects like Taiba and Kasim, new projects such as Rumah 2 (contract amount of 148.6 billion won) and Nairiya 2 (contract amount of 144.4 billion won) are expected to be added."

Last month, a supply contract for domestic liquefied natural gas (LNG) combined cycle power generation facilities worth 47.6 billion won was signed with Doosan Enerbility, and it is assessed that there are possibilities for 1-2 additional orders both domestically and internationally in the second half.

Researcher Kim said, "In the second quarter, there was a significant increase in performance related to the design, procurement, and construction (EPC) of power generation equipment at Pohang and Gwangyang steelworks, and expectations for the expansion of EPC-related sales at Suwon cogeneration plant in the second half are high."

BHI maintained its position as the number one global HRSG order share (18%) in the first half of this year, continuing from last year. Researcher Kim stated, "With a solid market position, new LNG combined cycle projects are being expanded, especially in regions such as the Middle East and Southeast Asia, where power demand is surging, leading to a favorable business environment."

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