KB Securities evaluated Doosan Enerbility on the 18th as the biggest beneficiary of the growth in the large nuclear power plants and small modular reactor (SMR) market. KB Securities maintained its 'buy' rating for Doosan Enerbility and raised its target price from 44,000 won to 75,000 won. This is the highest target price among those presented by securities firms.
Jung Hye-jung, a researcher at KB Securities, anticipated that demand for large nuclear power plants in the U.S. will increase due to the nuclear power generation policy of the Donald Trump administration. President Trump previously signed an executive order to new construct 10 large nuclear power plants starting in 2030, aiming to quadruple nuclear power generation capacity by 2050.
The researcher noted, "U.S. Westinghouse is preparing to secure new nuclear power plant contracts in the U.S. and is also participating in bids for nuclear power projects in Europe, which is expected to increase the order backlog from the previous 14 plants," adding that "it is positive for Doosan Enerbility, which supplies nuclear power plant main equipment to Westinghouse."
The researcher explained that the Korean-type nuclear power plants may start to generate revenue for Doosan Enerbility as early as 2026, following the final contract for the Dukovany nuclear power plant in the Czech Republic. She added, "We can also expect additional orders, including the two domestic nuclear power plants confirmed in the 11th Power Supply and Demand Basic Plan, as well as the Polish nuclear plant and the Czech Temelin nuclear plant."
The researcher predicted that the SMR market will accelerate due to the Trump administration's policy to shorten the approval period. The U.S. Nuclear Regulatory Commission (NRC) approved the SMR design of NuScale last month. Doosan Enerbility is producing materials for NuScale's SMR main equipment.
The researcher stated, "NuScale is progressing with a project in Romania aiming for commercial operation by 2030, and there is also a possibility of additional orders this year," adding that "Doosan Enerbility is expecting follow-up orders related to assembly and production following the material for NuScale's SMR main equipment."
She continued, "Doosan Enerbility plans to invest 700 billion won by 2030 to expand SMR module production capacity (CAPA)," stating that "as a nuclear foundry, Doosan Enerbility expects its stock price to rise in the mid to long term due to benefits from both nuclear power and SMR."