[Weekly HOT Stocks] Doosan Fuel Cell Attracts Attention from Foreign Investors

Top 5 Stocks by Net Purchases of Foreign Investors from 12th to 16th... Net Buying of Stocks Worth 75.2 Billion KRW

[Asia Economy Reporter Kum Boryeong] Doosan Fuel Cell attracted attention from foreign investors in the market over the past week.

According to the Korea Exchange on the 17th, Doosan Fuel Cell ranked 5th among the top stocks by net purchases from foreign investors from the 12th to the previous day. During this period, foreign investors made net purchases of Doosan Fuel Cell shares worth 75.2 billion KRW.

The stock price also showed an upward trend over the week. The price, which was 41,800 KRW on the 8th, soared to 47,350 KRW on the previous day. This represents a 13.28% increase over five trading days.

Hydrogen fuel cells are electricity generation devices that use hydrogen as fuel. Fuel cells for distributed power generation are at the center of the hydrogen economy. Eunyoung Lim, a researcher at Samsung Securities, explained, "Interest in Korea's hydrogen ecosystem increased starting with Hyundai Motor's launch of the Nexo in April 2018, but expanding the share of fuel cells in power generation is expected to be key. After the COVID-19 pandemic, the Green New Deal was proposed as part of fiscal policies by governments worldwide. With the decline in renewable energy generation costs and increased supply, the development of a hydrogen ecosystem for storage, transportation, and utilization has begun."

Lim's analysis is that Doosan Fuel Cell is leading the blossoming of Korea's hydrogen ecosystem. She said, "They have pursued a fourfold expansion of facilities through capital increases," and analyzed, "They expect high growth with sales of 450 billion KRW this year, 1.5 trillion KRW in 2023, and a sales target of 2 trillion KRW in 2025."

On the 15th, the decision to promote the introduction of the Hydrogen Power Obligation System (HPS) at the 2nd Hydrogen Economy Committee meeting is also positive news for Doosan Fuel Cell, as market expansion benefits are expected. Dongheon Lee, a researcher at Daishin Securities, said, "Doosan Fuel Cell produces a standardized fuel cell model of 440KW capacity, and scale expansion is easy through parallel connections," adding, "On July 28, they completed the world's largest 50MW-class Daesan hydrogen fuel cell power plant. Similar projects are expected to follow."

Lee also added, "They have fuel models for city gas, hydrogen, and LPG," and "There will be no issues with performance growth during the transitional energy conversion process from by-product hydrogen to green hydrogen."