[Click eStock] Doosan Heavy Industries, Core Business Stabilization... Ultimately a Matter of Time

[Asia Economy Reporter Lee Seon-ae] Daishin Securities stated on the 10th that Doosan Heavy Industries & Construction's core business is stabilizing. However, they did not provide an investment opinion or target price and cautioned that stock price volatility could be high.

Lee Dong-heon, a researcher at Daishin Securities, said, "During a recent NDR, there were many questions regarding order prospects, changes in governance, and the current status and outlook of the core and new businesses." He added, "The core business is maintaining a profitable trend based on the order backlog after completing restructuring, with annual orders expected to be around 8 trillion KRW." He continued, "Most of the borrowings from the Korea Development Bank will be repaid by the end of the year, improving the financial structure. However, visible results from new businesses will require time."

Doosan Heavy Industries & Construction's consolidated Q2 results recorded sales of 2.9006 trillion KRW (+11% yoy) and operating profit of 254.6 billion KRW (Q2 2020: -140.3 billion KRW). These results exclude InfraCore. The heavy industries segment (separate + overseas subsidiaries) posted sales of 1.2083 trillion KRW (+5% yoy), operating profit of 79.3 billion KRW (turning profitable from Q2 2020: -205.2 billion KRW), and an operating profit margin of 4.8% (+22.6 percentage points yoy).

New orders amounted to 998.4 billion KRW (-11% yoy, Q1 2020: 1.3218 trillion KRW), and the order backlog increased to 12.884 trillion KRW (+2% yoy). Non-operating income included a 64 billion KRW valuation gain from Doosan Bobcat PRS, and net profit reached 66.6 billion KRW, achieving consecutive profits following Q1.

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