[Edaily Reporter KIM YOON-JEONG ] Meritz Securities noted that while Doosan Fuel Cell(336260)posted second-quarter earnings that fell short of market expectations due to delays in the delivery of some projects, it expects a recovery in earnings in the second half of the year as orders and revenue recognition related to the Clean Hydrogen Power Generation Mandate (CHPS) system are concentrated. The firm maintained its “Buy” investment rating and a target price of 76,000 won.

On the 27th, Moon Kyung-won, an analyst at Meritz Securities, stated, “Revenue recognition was delayed as the delivery of some projects was pushed back to the next quarter,” adding, “Changes to the annual revenue forecast will be limited, as orders and revenue recognition related to the domestic CHPS program will be concentrated in the second half of the year.”
Doosan Fuel Cell’s second-quarter consolidated operating loss was 50.4 billion won, falling short of the market consensus (-23.6 billion won). Revenue came in at 44.3 billion won, significantly below the consensus estimate of 131.8 billion won. The loss widened in the second quarter as costs associated with stack replacements totaling approximately 30 billion won were factored in. Meritz Securities expects costs at a level similar to the first half to be reflected in the second half as well, but forecasts that the burden of these costs will decrease significantly starting in 2027.
Meritz Securities also assessed that securing orders for U.S. data center projects—a key driver of stock price growth—remains a valid prospect. Analyst Moon explained, “The order for polymer electrolyte fuel cells (PAFC) for U.S. data centers is still on track. Although it has been slightly delayed compared to the originally expected timeline, no major issues have arisen, and the final contract appears to be imminent.”
The firm also assessed that the solid oxide fuel cell (SOFC) business is progressing smoothly. With negotiations on the key terms of a stack supply contract with a German client now complete, the firm projected that this could lead to a formal contract in the third quarter and anticipated that SOFC stack production would begin in the third quarter.
The firm also offered an analysis suggesting that recent supply chain issues at competitor Bloom Energy could actually present an opportunity for Doosan Fuel Cell. Analyst Moon stated, “From the company’s perspective, Bloom Energy’s recent supply chain issues are either a neutral development or, in fact, an opportunity,” adding, “The fact that the stock price fell in tandem feels irrational; viewed differently, it represents an investment opportunity.”
Meanwhile, Doosan Fuel Cell fully repaid all corporate bonds that matured on July 10. Meritz Securities explained that while the company has no immediate plans for additional fundraising, it may need to raise funds depending on future order intake.