Group Logo(source: doosan.com)
On April 24, KB Securities stated that Doosan Enerbility (034020) is set to see simultaneous growth in orders and earnings across its three core business segments—large-scale nuclear, small modular reactors (SMRs), and gas turbines—beginning in 2027. The brokerage maintained its “Buy” rating and a target price of 34,000 KRW, emphasizing the company’s positioning as a major beneficiary of the anticipated “nuclear renaissance” and its potential to become a game-changer in the global energy market.
As of 10:53 a.m. KST on April 24, Doosan Enerbility was trading at 26,650 KRW, up 900 KRW or 3.5% from the previous session.
Hye-jeong Jeong, an analyst at KB Securities, forecasted first-quarter sales at 3.6 trillion KRW and operating profit at 254.8 billion KRW, down 11.7% and 28.8% year-on-year, respectively. She noted that the projected operating profit aligns with market consensus.
Jeong explained that while sales in the Enerbility segment are inevitably shrinking due to a decrease in EPC projects related to coal-fired power, the decline in low-margin business has likely contributed to improved profitability, boosting first-quarter earnings.
She identified the company’s next-generation growth drivers as: 1) surging global demand for large-scale nuclear power, 2) rapid expansion of the SMR market, and 3) accelerated international penetration of gas turbines.
“The emphasis on energy independence and stable electricity supply in the U.S. and Europe is propelling nuclear power to the forefront as the sole reliable energy source,” Jeong wrote. “We expect Doosan Enerbility to finalize a nuclear export contract with the Czech Republic in Q2, with meaningful revenue contribution starting in 2027.”
In addition, Doosan’s strategic partner, Westinghouse, is advancing new nuclear projects in Poland, Bulgaria, and Ukraine. Jeong highlighted Doosan’s close collaboration with leading SMR developers—NuScale, X-energy, and TerraPower—since the early stages of development. The company is aiming to commercialize SMR technologies by 2030, and order momentum for core SMR modules is expected to accelerate from 2027.
As for gas turbines, she noted, “Soaring demand for LNG-based power generation is creating a supply shortage, significantly enhancing Doosan’s potential for overseas expansion starting in 2027.” Jeong added that the upcoming energy strategy announcement by the U.S. National Energy Reliability Commission (NERC), expected at the end of May, will likely center on SMR and LNG technologies, positioning Doosan Enerbility as a key beneficiary given its competitive edge in both fields.
*[KOSPI]Doosan Enerbility(034020)(formerly Doosan Heavy Industries & Construction) engages in businesses such as power facilities, freshwater facilities, castings and forgings, construction, and construction machinery. Market capitalization is 16.47 trillion won(as of April 23, 2024, closing price).
Group Logo(source: doosan.com)
On April 24, KB Securities stated that Doosan Enerbility (034020) is set to see simultaneous growth in orders and earnings across its three core business segments—large-scale nuclear, small modular reactors (SMRs), and gas turbines—beginning in 2027. The brokerage maintained its “Buy” rating and a target price of 34,000 KRW, emphasizing the company’s positioning as a major beneficiary of the anticipated “nuclear renaissance” and its potential to become a game-changer in the global energy market.
As of 10:53 a.m. KST on April 24, Doosan Enerbility was trading at 26,650 KRW, up 900 KRW or 3.5% from the previous session.
Hye-jeong Jeong, an analyst at KB Securities, forecasted first-quarter sales at 3.6 trillion KRW and operating profit at 254.8 billion KRW, down 11.7% and 28.8% year-on-year, respectively. She noted that the projected operating profit aligns with market consensus.
Jeong explained that while sales in the Enerbility segment are inevitably shrinking due to a decrease in EPC projects related to coal-fired power, the decline in low-margin business has likely contributed to improved profitability, boosting first-quarter earnings.
She identified the company’s next-generation growth drivers as: 1) surging global demand for large-scale nuclear power, 2) rapid expansion of the SMR market, and 3) accelerated international penetration of gas turbines.
“The emphasis on energy independence and stable electricity supply in the U.S. and Europe is propelling nuclear power to the forefront as the sole reliable energy source,” Jeong wrote. “We expect Doosan Enerbility to finalize a nuclear export contract with the Czech Republic in Q2, with meaningful revenue contribution starting in 2027.”
In addition, Doosan’s strategic partner, Westinghouse, is advancing new nuclear projects in Poland, Bulgaria, and Ukraine. Jeong highlighted Doosan’s close collaboration with leading SMR developers—NuScale, X-energy, and TerraPower—since the early stages of development. The company is aiming to commercialize SMR technologies by 2030, and order momentum for core SMR modules is expected to accelerate from 2027.
As for gas turbines, she noted, “Soaring demand for LNG-based power generation is creating a supply shortage, significantly enhancing Doosan’s potential for overseas expansion starting in 2027.” Jeong added that the upcoming energy strategy announcement by the U.S. National Energy Reliability Commission (NERC), expected at the end of May, will likely center on SMR and LNG technologies, positioning Doosan Enerbility as a key beneficiary given its competitive edge in both fields.
*[KOSPI]Doosan Enerbility(034020)(formerly Doosan Heavy Industries & Construction) engages in businesses such as power facilities, freshwater facilities, castings and forgings, construction, and construction machinery. Market capitalization is 16.47 trillion won(as of April 23, 2024, closing price).