[Click eStock] “Doosan Enerbility, Growth Expected Amid Global Market Expansion”

NH Investment & Securities analyzed on the 9th that Doosan Enerbility is expected to grow amid a favorable global market environment.

Lee Min-jae, a researcher at NH Investment & Securities, stated in the report on the same day, "The impact of domestic political uncertainties on the core business is limited," adding, "This is because all major markets, including SMR (U.S.), large nuclear power plants (Europe), and gas turbines (domestic, U.S.), are in an expansion phase."

In the U.S., alongside increased power demand due to data centers and manufacturing reshoring, replacement demand for aging large nuclear power plants operating for over 40 years is rising, leading to increased SMR investments centered on big tech and utilities. Doosan Enerbility is expected to strengthen its market position by handling main equipment not only for existing partners NuScale and X-Energy but also for new partners such as TerraPower.

In the gas turbine sector, the possibility of entering the U.S. market is increasing. Doosan Enerbility's competitiveness is highlighted as it surpasses the supply capabilities of major competitors such as GE Vernova, Hitachi, and Siemens.

In Europe, construction of large nuclear power plants is proceeding as planned in Eastern Europe, UAE, the UK, and the Netherlands. Projects such as 2+2 units in the Czech Republic, 2 units in Poland, and 2 units in the UAE are underway, and with no suitable countries to replace Korea, Doosan Enerbility's order prospects are bright.

Domestically, the cancellation possibility of Shin Hanul Units 3 and 4 is low, with construction scheduled to begin in September 2024. Researcher Lee Min-jae predicted, "The cancellation of domestic projects will have minimal impact on the nuclear power value chain."

Doosan Enerbility's annual orders last year are estimated to have exceeded guidance. Consolidated sales for the fourth quarter were 3.4 trillion KRW, down 31% year-on-year, and operating profit was 182.6 billion KRW, down 39%, likely falling short of market expectations. This is mainly due to the performance decline of the consolidated subsidiary Doosan Bobcat. Doosan Enerbility's standalone sales were 1.6 trillion KRW, down 36% year-on-year, but operating profit increased by 42% to 70.6 billion KRW, expected to meet guidance.

Researcher Lee Min-jae emphasized, "If the wave of uncertainty is overcome, Doosan Enerbility will continue its growth in the global market."

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