[Click e-Stock] "Doosan Fuel Cell, Earnings Have Bottomed Out and Orders Are Rebounding"

Expectations for Overseas Orders in PAFC and SOFC Businesses

Although Doosan Fuel Cell posted a loss in its earnings for the fourth quarter of last year, some analysts expect orders to rebound, backed by the company’s push into overseas markets.

Jung Hyejeong, a researcher at KB Securities, said, "Doosan Fuel Cell's provisional operating profit and loss came in below both the market consensus and KB Securities' estimate of 68.8 billion won and 74.6 billion won, respectively." Doosan Fuel Cell posted provisional fourth-quarter sales of 135.8 billion won and an operating loss of 76.6 billion won last year.

Jung explained that earnings were weak because various expenses typically incurred in the early stage of a business were concentrated in this period. In particular, the company recorded a large operating loss, mainly because costs arising from setbacks in the early stages of its phosphoric acid fuel cell (PAFC) and solid oxide fuel cell (SOFC) businesses were heavily concentrated.

She interpreted the increasing visibility of the order pipeline as a positive factor for the share price. Doosan Fuel Cell’s new orders totaled only 72 MW last year, remaining at roughly the same level as the previous year (74 MW). However, of the CHPS volume ordered in 2024, 68 MW had its contract delayed, pushing the order recognition into this year. Based on this, Jung analyzed that this year’s new orders could reach about 175 MW in the domestic market alone, including 107 MW of last year’s CHPS volume.

She was particularly positive about the company’s prospects for entering overseas markets. She said, "In the case of SOFC, the company is pursuing a strategy of separately selling cell stacks, for which demand has recently been increasing in the short term, and exports to Europe are under discussion." She added, "Development has also been completed for a PAFC system that can use the waste heat generated from fuel cells for cooling data centers, and technology and quality verification are underway with major global Big Tech companies. It is expected that the company will be able to secure orders within this year."

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