Group Logo(source: doosan.com)
KB Securities stated on July 30 that Doosan Enerbility (034020) is expected to begin growing its order backlog starting this year. The brokerage maintained its “Buy” rating and target price of 89,000 won. The stock closed at 65,100 won in the previous session.
Doosan Enerbility’s preliminary second-quarter revenue rose 10.1% year-on-year to 4.6 trillion won, while operating profit declined 12.5% to 271.1 billion won, falling short of market expectations.
Jung Hye-jung, an analyst at KB Securities, noted, “Although revenue from Doosan Bobcat was somewhat subdued, sales from the Enerbility division increased 25.0% year-on-year to 2.2 trillion won, contributing to overall top-line growth. However, the high proportion of revenue from low-margin segments weighed on profitability. That said, since the first quarter, the increasing contribution from high-growth areas such as nuclear power equipment and gas turbines has led to a significant improvement in operating profit on a quarter-over-quarter basis.”
Jung added that the order backlog, which is expected to serve as a future growth engine, is projected to expand beginning this year.
“In the first half of the year, Doosan Enerbility secured gas-fired power plant EPC contracts worth a total of 2.1 trillion won in the Middle East and Vietnam, already achieving 61.8% of its full-year gas segment order target of 3.4 trillion won,” she explained. “In addition, the company is expected to finalize a contract this year with Korea Hydro & Nuclear Power to supply equipment for two reactors at the Dukovany nuclear power plant in the Czech Republic.”
She continued, “Doosan Enerbility will be involved in a wide scope of the Czech project, including major nuclear equipment, turbines, generators, and EPC services. Given that the total project cost in the Czech Republic is significantly larger than comparable domestic projects, the total order value is likely to exceed the initially projected 3.8 trillion won, suggesting that the company may surpass its annual order guidance of 10.7 trillion won.”
Jung also highlighted the positive outlook for the company’s small modular reactor (SMR) business, noting, “Following the standard design approval of NuScale Power and ongoing reviews of new U.S. projects, SMR orders could add another 500 billion won this year. In the gas turbine segment, beyond the 400 billion won already secured from domestic power plants, potential orders from the U.S. currently under discussion are also encouraging.”
*[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 41.636 trillion won (as of July 29, 2025, closing price).
Group Logo(source: doosan.com)
KB Securities stated on July 30 that Doosan Enerbility (034020) is expected to begin growing its order backlog starting this year. The brokerage maintained its “Buy” rating and target price of 89,000 won. The stock closed at 65,100 won in the previous session.
Doosan Enerbility’s preliminary second-quarter revenue rose 10.1% year-on-year to 4.6 trillion won, while operating profit declined 12.5% to 271.1 billion won, falling short of market expectations.
Jung Hye-jung, an analyst at KB Securities, noted, “Although revenue from Doosan Bobcat was somewhat subdued, sales from the Enerbility division increased 25.0% year-on-year to 2.2 trillion won, contributing to overall top-line growth. However, the high proportion of revenue from low-margin segments weighed on profitability. That said, since the first quarter, the increasing contribution from high-growth areas such as nuclear power equipment and gas turbines has led to a significant improvement in operating profit on a quarter-over-quarter basis.”
Jung added that the order backlog, which is expected to serve as a future growth engine, is projected to expand beginning this year.
“In the first half of the year, Doosan Enerbility secured gas-fired power plant EPC contracts worth a total of 2.1 trillion won in the Middle East and Vietnam, already achieving 61.8% of its full-year gas segment order target of 3.4 trillion won,” she explained. “In addition, the company is expected to finalize a contract this year with Korea Hydro & Nuclear Power to supply equipment for two reactors at the Dukovany nuclear power plant in the Czech Republic.”
She continued, “Doosan Enerbility will be involved in a wide scope of the Czech project, including major nuclear equipment, turbines, generators, and EPC services. Given that the total project cost in the Czech Republic is significantly larger than comparable domestic projects, the total order value is likely to exceed the initially projected 3.8 trillion won, suggesting that the company may surpass its annual order guidance of 10.7 trillion won.”
Jung also highlighted the positive outlook for the company’s small modular reactor (SMR) business, noting, “Following the standard design approval of NuScale Power and ongoing reviews of new U.S. projects, SMR orders could add another 500 billion won this year. In the gas turbine segment, beyond the 400 billion won already secured from domestic power plants, potential orders from the U.S. currently under discussion are also encouraging.”
*[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 41.636 trillion won (as of July 29, 2025, closing price).