Doosan Enerbility(034020), buoyed by expectations for winning a contract to build a nuclear power plant in the Czech Republic and an outlook for broader entry into the global nuclear market, was strong early on the 8th.
At 9:25 a.m. that day on the Korea Exchange, Doosan Enerbility was trading at 91,600 won, up 3,700 won (4.21%) from the previous session. Right after the open, the gain widened, with the intraday high surging to 93,500 won.
Recently, as the award of the new nuclear plant construction project in the Czech Republic by "Team Korea," including Korea Hydro & Nuclear Power Co. (KHNP), has proceeded without a hitch, expectations for an earnings improvement at Doosan Enerbility, which is in charge of supplying major equipment, appear to be stoking investor sentiment.
In the securities industry, the view is that if the main contract for the Czech nuclear project is concluded, not only will a large volume of orders be secured, but a bridgehead will also be established for entry into the global nuclear market, including Europe. Analysts say expectations for small modular reactors (SMRs) and additional nuclear orders beyond the Czech Republic are also driving the stock higher.
Kiwoom Securities said in a report that day it is maintaining Doosan Enerbility as its top pick in the sector. Cho Jae-won, a Kiwoom Securities analyst, said, "Because it supplies equipment to both the Korean-designed reactor and the AP1000, whether it benefits is intuitive," adding, "Depending on whether the AP1000 order scope is expanded, there could be upside."