[Click eStock] "Bumhan Fuel Cell Expected to Expand Overseas Through K-Defense"

On June 12, Shinhan Investment Corp. raised its target price for Bumhan Fuel Cell from 16,000 won to 18,900 won. The investment opinion was maintained at "Trading BUY," which is one of the neutral recommendations.

On this day, Choi Kyuhun, a researcher at Shinhan Investment Corp., stated, "Bumhan Fuel Cell's core business is fuel cells for submarines," and added, "The visible results from export projects are expected to serve as a strong growth driver."

Starting from the first Jangbogo-III submarine, domestically produced fuel cells developed by Bumhan Fuel Cell will be installed. Both Hanwha Ocean and HD Hyundai Heavy Industries are clients.

Choi analyzed, "The K-Submarine One Team (Hanwha Ocean and HD Hyundai Heavy Industries) is participating in overseas submarine project bids, including 8 to 12 units in Canada and 3 units in Poland." He further explained, "The relevant market size is expected to be 8 to 15 submarines, with a total value estimated at between 220 billion won and 430 billion won." He added, "This estimate is based on approximately 28 billion won per submarine, which is in line with the contract Bumhan Fuel Cell received from Hanwha Ocean for the Jangbogo-III Batch-II third submarine."

The risk factor is Hanwha Aerospace's development of core fuel cell components. Currently, under the leadership of Hanwha Ocean (in charge of construction and system integration), Hanwha Aerospace is participating in the export-oriented 3,000-ton Jangbogo-III modification and development project. The project began at the end of last year and aims to be completed by 2028.

Choi noted, "If the development is successful, Bumhan Fuel Cell's market position could be weakened due to Hanwha's own vertical integration." However, he also said, "Even if Hanwha Group succeeds in development, it is highly likely that they will continue to work alongside Bumhan Fuel Cell, which has a proven track record of commercialization (having achieved domestic production in about 15 years), at least in the mid- to short-term. It is also possible for Hanwha Group to manufacture the modules while Bumhan Fuel Cell supplies customized stacks."

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