[Click eStock] "Doosan, Operating Profit Momentum Continues... Target Price Up"

[Asia Economy Reporter Jihwan Park] Yuanta Securities announced on the 15th that Doosan continues to show strong operating profit performance. They maintained a 'Buy' investment rating and raised the target price to 220,000 KRW.

Namgon Choi, a researcher at Yuanta Securities, evaluated, "The sustained strong operating profit confirms a significantly improved financial structure." Doosan's consolidated sales for the third quarter reached 3.78 trillion KRW, a 15.0% increase year-on-year, and operating profit rose 80.0% to 259.5 billion KRW. However, controlling shareholder net income turned to a loss of 44.2 billion KRW compared to the previous quarter. This was due to disposal corporate tax expenses (-118.4 billion KRW) from the sale of industrial vehicles and Bobcat PRS valuation losses (-82.3 billion KRW), resulting in Doosan Heavy Industries & Construction's net loss (-13.6 billion KRW). Nevertheless, excluding one-time costs, Doosan Heavy Industries & Construction's performance remains steady. Its cumulative operating profit for the third quarter already exceeded the annual target of 221.2 billion KRW, reaching 226.1 billion KRW.

The rapid improvement in financial stability is also positive. The consolidated debt ratio fell from 290.7% at the end of last year to 238.4% in the third quarter of this year. The consolidated net borrowings decreased sharply from 8.9 trillion KRW to 5.8 trillion KRW in the third quarter. Doosan Heavy Industries & Construction's consolidated debt ratio recorded 198.7%, dropping below 200%. Upon the sale of Doosan Construction, Doosan Heavy Industries & Construction's consolidated net borrowings are expected to reduce by more than 500 billion KRW, and it is anticipated to graduate from creditor management simultaneously.

The target price was raised to 220,000 KRW reflecting the restructuring of the hydrogen business. This adjustment reflects an increase in the hydrogen business value to 980 billion KRW. Researcher Namgon Choi emphasized, "The current market capitalization reflects only Doosan's standalone business value," adding, "As Doosan Heavy Industries & Construction's credit risk diminishes and market confidence in the going concern strengthens, the value of subsidiaries is expected to be added to Doosan's shareholder value evaluation."

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