 |
Photo = Yonhap news |
Hana Securities has maintained its "Buy" rating on Doosan Enerbility, citing expected benefits from the expansion of AI investments in developed countries and noting that the current stock price is considered reasonable. The target price has been raised by 32% to 33,000 KRW.
Hana Securities reported that Doosan Enerbility’s Q4 operating profit decreased by 20.8% compared to the previous year, reaching 234.9 billion KRW, while its revenue fell by 5.5% to 4.6 trillion KRW. The decline in revenue from the Enerbility division and its subsidiary, Doosan Bobcat, was the main factor behind the slowdown in its consolidated performance.
The positive outlook for the company is largely attributed to its potential connection with various growth factors, although long-term performance still needs to be demonstrated.
Hana Securities highlighted that Doosan Enerbility won a bid for offshore wind power with Yawol Offshore Wind and is expected to supply 8MW turbines. Additionally, the company is benefiting from the increased demand for power in North America and the revaluation of the nuclear power value chain, as well as the anticipated market entry into the gas turbine sector.
The firm also noted that Doosan Enerbility has secured multiple supply and service contracts with power subsidiaries, including a 150MW-class 7F casing replacement project in November last year. With over 650 turbines already in operation in North America, the company is poised to expand into new markets based on its domestic experience.
While wind and gas turbines are still primarily addressing domestic demand, and SMR (Small Modular Reactors) will take time to generate large-scale orders, Hana Securities believes that the benefits from AI investment expansion in developed countries, along with the potential for multiple expansion, are entirely within a reasonable range.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
