[Edaily Reporter Kim Hyung-il ] NH INVESTMENT & SECURITIES forecast that policy momentum in the domestic and international nuclear power industries will continue until the U.S. midterm elections for DOOSAN ENERBILITY(034020). The firm analyzed that, based on the company’s competitiveness in the markets for large-scale nuclear power plants and small modular reactors (SMRs), order growth will accelerate in earnest starting next year. It maintained its “Buy (BUY)” investment rating and target price of 133,000 won.

On the 26th, Lee Min-jae, an analyst at NH INVESTMENT & SECURITIES, cited the domestic and international policy momentum expected to continue until the U.S. midterm elections and the company’s attractive valuation relative to global competitors as reasons for maintaining the target price.

In the U.S., while the Department of Energy (DOE) and the Department of Commerce (DOC) are each moving forward with plans for 10 large-scale nuclear power plants at the federal level, state governments, public institutions, and private companies are also formulating plans to adopt SMRs. In South Korea, discussions on introducing additional nuclear power plants have begun based on medium- to long-term electricity demand driven by three major megaprojects, and there are also signs of nuclear power plant construction in Europe, the Middle East, and Southeast Asia.

In the gas turbine business, the firm projected continued demand centered on North American Big Tech companies, while also forecasting increased demand related to domestic fuel transitions and mega-projects. It also anticipated that the acquisition of additional clients, including North American utilities, would be decided in the second half of the year.

The company also highlighted its attractive valuation relative to global competitors. The average EV/EBITDA multiple for the gas turbine segments of global competitors is projected to be 18x as of 2030—higher than that of DOOSAN ENERBILITY—and analysis indicates that valuation differences can exceed twofold depending on the proportion of North American business.

They projected that 50 GW—more than half of the large-scale nuclear power plant and SMR pipeline that DOOSAN ENERBILITY is expected to secure by 2030—will be in North America. They also anticipated that North America would account for a significant portion of the gas turbine business. Amid strong profitability, the expansion of service revenue was cited as a positive factor.

Key future catalysts identified include high-level talks on the Korea-U.S. Nuclear Agreement scheduled before the U.S. midterm elections; the announcement of the first investment in the U.S., expected in September; the draft of the 12th Basic Plan for Electricity Supply and Demand in October; and the nuclear agreement between the U.S. and Saudi Arabia, expected in October or November.