KB Securities said on the 26th that exports of fuel cells for U.S. data centers are becoming visible for Doosan Fuel Cell and that operating profit is expected to grow over the medium to long term from 2027. It raised its target price to 50,000 won from 29,000 won and its investment opinion to "buy" from "neutral." Doosan Fuel Cell's closing price in the previous session was 38,100 won.
Doosan Fuel Cell's revenue this year is estimated at 641.8 billion won, up 41.1% from a year earlier, with an operating loss of 36.9 billion won.
Jeong Hye-jeong, an analyst at KB Securities, said, "In addition to the PAFC volume won in last year's CHPS bidding market, with some volumes deferred from 2024 still remaining, deliveries of SOFCs for the Haichangyuan project are also proceeding, which is expected to contribute to sales expansion." However, with early replacement demand still remaining for fuel cells previously delivered where Production yield stabilization and quality issues were identified in the SOFC production process, continued operating losses appear inevitable.
KB Securities noted the growing possibility of supplying fuel cells to data centers. Doosan Fuel Cell developed a PAFC solution that can use waste heat generated by fuel cells for cooling and completed technology verification with big tech companies.
Jeong explained, "With a limited number of companies mass-producing fuel cells for power generation in the global market, big tech companies are in a phase where they must secure on-site generation sources directly and quickly due to U.S. President Donald Trump's emergency power auction announcement."
She added, "As exports of the new PAFC model for data centers and orders for data centers through SOFC production stabilization and cost reduction become visible, there could be room for further upward adjustments."