NH Investment & Securities evaluated that Doosan Enerbility will benefit from being a latecomer in the gas turbine market in North America. Consequently, it raised the target price from 26,500 won to 33,000 won and maintained its investment opinion at 'buy.' On the 17th, Doosan Enerbility's closing price was 28,200 won.
On the 18th, Lee Min-jae, a Research Institute member at NH Investment & Securities, explained regarding the target price increase, "Considering the expansion that Doosan Enerbility will undertake from 2025 to 2027, we have revised our profit estimates for the nuclear and gas institutional sectors to 1 trillion won and 4 trillion won, respectively."
Doosan Enerbility is a company that manufactures core equipment for nuclear power plants, nuclear fuel handling facilities, nuclear fuel transportation containers, and reactor system auxiliary devices. It supplies key equipment for thermal power plants and desalination facilities both domestically and internationally.
North American utility companies perceive that renewable energy can serve as a power source capable of meeting the electricity demand of growing data centers. The Research Institute member noted, "Most new gas power projects will not be operational until at least after 2030," adding, "With increasing demand for gas power in the Middle East and East Asia, benefits will continue amid limited supply."
Last year, the three gas turbine manufacturers recorded their highest new orders, which are expected to be delivered only after 2028.
The Research Institute member explained, "Doosan Enerbility plans to invest a total of 1.3 trillion won by 2027 to expand its large nuclear power plants, small modular reactors (SMR), and gas turbines," and stated, "As a latecomer in gas turbines, Doosan Enerbility is expected to gain opportunities for contracts in North America and Europe, which have relatively strict standards."
However, last year's fourth quarter results did not meet the expectations of the securities industry. Doosan Enerbility's consolidated sales for the fourth quarter were 4.6 trillion won, and operating profit was 234.9 billion won. However, looking only at the Doosan Enerbility institutional sector, sales were 2.2 trillion won, and operating profit was 63 billion won. The Research Institute member added, "Sales decreased by 7% compared to the same period last year," and noted, "Operating profit also slightly fell short of our estimates."