[Edaily Reporter kyoungeun kim ] IBK Investment & Securities announced on the 28th that it is maintaining its “Buy” investment rating for DOOSAN ENERBILITY(034020), citing continued robust growth in new orders. However, the target price was revised downward by 12.5% from the previous 160,000 won to 140,000 won to reflect the recent decline in the stock price.
Kim Tae-hyun, an analyst at IBK Investment & Securities, stated in a report released that day, “New orders in the Energyability division for the second quarter totaled 4.3368 trillion won, marking a 113.0% increase year-over-year and a 55.7% increase quarter-over-quarter,” adding “The company secured orders for two gas turbines for domestic combined-cycle power plants and three long-term gas turbine service contracts, and continued to win orders for steam turbines for data centers in North America.” As a result, the order backlog expanded to 26.3509 trillion won (up 60.4% year-over-year and 8.7% quarter-over-quarter).
Although the company is maintaining its annual order target of 13.3 trillion won, Analyst Kim projected, “Considering the progress of major projects—such as the construction of the Czech nuclear power plant and related key equipment, main components for small modular reactors (SMRs), long-lead equipment for the U.S. AP1000 nuclear power plant, and overseas gas and steam turbines—it appears highly likely that the company will exceed its target.”
He continued, “With Westinghouse expected to establish a special-purpose entity this year to pursue one or two AP1000 nuclear power plant projects in the U.S., it is understood that price negotiations for key equipment, such as reactors and steam generators, are underway with the company,” and He added, “Furthermore, if a power purchase agreement is signed between NuScale and the Tennessee Valley Authority (TVA), contracts for the manufacture of NuScale SMR main equipment are expected to begin in earnest in the second half of the year.”
Regarding the target price adjustment, Analyst Kim noted, “We are lowering the target price by 12.5% to 140,000 won to reflect the decline in market valuation,” but “However, considering the full-scale launch of large-scale nuclear power and SMR projects in the U.S., the expansion of South Korean investment in the U.S., the advancement of three major mega-projects, and the review of new nuclear power plants and SMRs under the 12th Basic Plan for Power Supply and Demand, the medium- to long-term growth potential of the domestic and international nuclear power and gas turbine markets is expected to expand further,” he stated. He concluded by saying, “Accordingly, we maintain our ‘Buy’ investment rating.”