Shinhan Investment Corp. noted on the 23rd that it is a time to pause after the recent price surge of Doosan Enerbility, stating that the perspective of buying when there is a stock price adjustment remains valid. It maintained an investment opinion of 'Buy' and identified nuclear power and natural gas power generation equipment as a top pick. The target stock price has been raised to 100,000 won. The previous day's closing price of Doosan Enerbility was 62,600 won.
Shinhan Investment Corp. expected Doosan Enerbility's revenue and operating profit for the second quarter of this year to be 1.7 trillion won and 92.5 billion won, respectively. The revenue figure represents a decrease of 4.9% compared to the same period last year, while the operating profit is projected to increase by 28.2% compared to the same period last year.
Choi Gyu-hyun, a researcher at Shinhan Investment Corp., said, "We expect that both the scale and profits will improve compared to the previous quarter, where a one-time factor occurred," adding, "Not only seasonal effects but also the impact of the transition in the business portfolio of growth sectors such as large nuclear power plants, small modular reactors (SMR), and gas turbines will likely continue to be reflected."
He also projected that the importance of earnings announcements will further increase in the future, as market expectations have risen accordingly.
Researcher Choi stated, "Similarly, the status of growth business development will be very important in this earnings announcement," adding, "The level of concretization regarding SMR and gas turbine orders is key." Based on this status, a more detailed estimation of future profit and loss improvements can be made, and such meticulous estimations will become a solid foundation for stock price increases.
He emphasized, "The direction of the expectation that numbers will improve from orders to profits is clear," explaining that "Ultimately, new orders related to growth businesses such as SMR and gas turbines will enable a more precise calculation of profit and loss improvements and justify higher valuations."