[Click eStock] Doosan Fuel Cell, Revenue Estimates Lowered... Target Price Downgraded

[Asia Economy Reporter Hwang Yoon-joo] NH Investment & Securities on the 9th maintained its 'Buy' rating on Doosan Fuel Cell but lowered the target price to 53,000 KRW following an 8% downward revision of the 2023 sales estimate.

Jeong Yeon-seung, a researcher at NH Investment & Securities, stated on the 9th, "We factored in a 14% reduction in the price-to-sales ratio (PSR) due to the stock price decline of peer group companies, as well as delays in the amendment of the Hydrogen Act and the resulting postponement of large-scale project orders amid policy uncertainties."

Researcher Jeong explained, "The 2022 order guidance is set at 240MW, an 83% increase compared to the same period last year," adding, "With the delay in the amendment of the Hydrogen Act, it is expected that orders for small- and medium-sized fuel cells will continue under the existing Renewable Portfolio Standard (RPS) system."

He continued, "The memorandum of understanding signed on the 7th with Cell and Korea Shipbuilding & Offshore Engineering for ship fuel cells is significant in that it secures global energy companies and domestic shipbuilders as partners," and added, "For a stock price rebound, it is necessary to reduce policy uncertainties through the amendment of the Hydrogen Act and to improve profit margins during the process of external growth."

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