[Weekly HOT Stocks] Doosan Fuel Cell, Rising Foreign Interest... Overhang Issue Resolved

Samsung Securities Expects Doosan Fuel Cell to Achieve 1.5 Trillion KRW in Sales in 2023

Photo by Asia Economy DB

[Asia Economy Reporter Kum Bo-ryeong] Doosan Fuel Cell attracted market attention over the past week as the Doosan Group owner family disposed of their shares in the company.

According to the Korea Exchange on the 10th, foreign investors net purchased Doosan Fuel Cell stocks worth 147.7 billion KRW between the 4th and 8th. During this period, Doosan Fuel Cell ranked 6th among the top net purchase stocks by foreign investors across both the KOSPI and KOSDAQ markets.

Doosan Fuel Cell announced on the 6th that Park Jung-won, chairman of Doosan Group, and nine others sold 5,327,270 common shares through an off-hours block deal. This corresponds to an 8.13% stake based on common shares. The owner family, including Chairman Park, decided to dispose of 19.7% of their Doosan Fuel Cell shares and initially sold 5.6 million common shares last October. With the successful sale of the remaining shares this time, the overhang issue has been resolved.

The stock price showed an upward trend over the week. The closing price was 53,500 KRW on December 30 last year, rising to 56,300 KRW on the 4th and 57,000 KRW on the 5th. Although it dropped to 54,500 KRW on the 6th, it rose again to 55,700 KRW on the 7th and 57,100 KRW on the 8th, marking a 6.73% increase over the week.

Performance is expected to be weak until the first half of this year. Samsung Securities researcher Lim Eun-young analyzed, "With the introduction and ratio setting of the Hydrogen Power System (HPS) expected in the first quarter, and the order timing of large power generation companies delayed until after the second quarter, Doosan Fuel Cell's performance is expected to be somewhat sluggish until the first half."

Doosan Fuel Cell aims for sales of 1.5 trillion KRW in 2023. Regarding this, researcher Lim said, "Growth visibility has increased due to HPS," adding, "The hydrogen value chain is one of the most actively invested sectors alongside electric vehicles. Thanks to investments for carbon neutrality in Europe and China, and the Biden administration's eco-friendly investment policies in the U.S., global investment themes are focusing on this area."

This content was produced with the assistance of AI translation services.