[Click e-Stock] Doosan Enerbility Secures Order Momentum... Target Price Set at 92,000 Won

On November 27, SK Securities initiated coverage of Doosan Enerbility, stating that the company has secured momentum for orders in both large-scale nuclear power plants and small modular reactors (SMRs). The firm assigned a "Buy" rating and set a new target price of 92,000 won.

Nam Insik, an analyst at SK Securities, said, "2026 will be a turning point when order visibility increases in both large-scale nuclear power and SMR sectors." He explained, "For large-scale nuclear, following the signing of the main contract for Units 5 and 6 of the Dukovany nuclear power plant in the Czech Republic at the end of 2025, Doosan Enerbility is expected to win equipment orders for new nuclear projects being promoted by Westinghouse in Bulgaria and Poland starting in 2026." In addition, large-scale nuclear power projects in Poland, the United Arab Emirates (UAE), and Saudi Arabia are also in the process of order acquisition. Nam further noted, "In the SMR sector, key partner projects are entering the commercialization phase, and Doosan Enerbility is expected to begin full-scale equipment supply as an SMR foundry company."

Gas turbine orders are also anticipated next year. Nam stated, "In the past, large gas turbines were competitive due to their shorter delivery times compared to other power sources, but recently, due to a surge in demand and production capacity constraints, lead times have become longer." He analyzed, "This market environment is providing Doosan Enerbility, a latecomer, with opportunities to enter the global market."

In October, Doosan Enerbility signed a contract to supply two gas turbines to a major U.S. big tech company. Nam pointed out, "While the average lead time of the three major global players is as long as five years, Doosan Enerbility was able to secure an export contract with a big tech company with a delivery schedule within one year, which is significant." He added, "Given Doosan Enerbility's competitive advantage in rapid delivery, orders for large gas turbines destined for North American big tech companies are expected to ramp up in 2026."

U.S. electricity rates and next year's midterm elections are cited as factors that could impact Doosan Enerbility's share price going forward. Nam explained, "As electricity demand rises, U.S. electricity rates are increasing. When he was a candidate, President Donald Trump pledged to lower electricity rates, and after taking office, he pursued policies to revive nuclear and fossil fuels. If electricity rates continue to rise, there is a possibility that the direction of U.S. energy policy may change." He continued, "Furthermore, since nuclear power is highly dependent on government approval for licensing and nuclear fuel, the outcome of the midterm elections could affect valuation multiples."

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