Eugene Investment & Securities on the 15th said Doosan Enerbility's profitability will strengthen in earnest as nuclear power plant orders become tangible. It initiated coverage with a Buy rating and a target price of 150,000 won. The previous trading day's closing price for Doosan Enerbility was 99,700 won.
Eugene Investment & Securities judged that this year Doosan Enerbility will post sales of 18 trillion won, up 4% from a year earlier, and operating profit of 1 trillion won, up 40%.
This growth trend was analyzed to be led by key businesses such as nuclear power and gas turbines.
Hwang Seong-hyeon, an analyst at Eugene Investment & Securities, said, "Sales from the Czech Dukovany Units 5 and 6 nuclear power plant will be recognized, and as deliveries on eight gas turbine orders get underway in earnest, top-line growth looks possible," adding, "With the first quarter as the trough, quarterly operating profit is expected to show a pattern of low in the first half and high in the second half."
Potential overseas nuclear power orders were cited as a future growth driver. U.S. President Donald Trump is currently aiming to start construction on 10 nuclear plants by 2030.
Hwang said, "Large nuclear power orders are expected to ramp up starting this year," adding, "Given that it takes at least more than 10 years from permitting to completion due to the nature of these projects, orders are likely to start soon."
Small modular reactors (SMRs) were also cited as a growth driver. He said, "There are 70 designers and models for SMRs worldwide, but only a very few companies can actually manufacture ultra-large forgings and reactor pressure vessels," adding, "Doosan Enerbility, as an SMR foundry, is expected to achieve production capacity for 20 units by 2028, sustaining growth."
Gas turbine orders may also expand. Hwang analyzed, "Doosan Enerbility can see maintenance service revenue grow alongside increased delivery volumes and cumulative orders after completing an additional 12 gas turbines by 2028," adding, "By 2038, orders for 100 gas turbines and service revenue could reach 1 trillion won."