'Doosan Fuel Cell' Filled with Order Expectations This Year

[Asia Economy Reporter Hyunseok Yoo] Doosan Fuel Cell's order volume is expected to increase this year.

According to the financial investment industry on the 7th, Doosan Fuel Cell recorded sales of 157.7 billion KRW and an operating profit of 5.6 billion KRW in the fourth quarter of last year. This represents a decrease of 28.7% and 71.3% respectively compared to the same period last year. The securities industry analyzes that this decline in profitability was due to an increase in the sales proportion of products with relatively low margins.

However, performance improvement is expected this year due to order expansion and other factors. Byunghwa Han, a researcher at Eugene Investment & Securities, said, "The 2021 order guidance is 142MW, which is a 32% increase compared to the previous year, and it is judged to be sufficiently achievable," adding, "The hydrogen power generation mandate system is currently in the stage of circulating industry opinions and is expected to be legislated within the year without difficulty."

In particular, Eugene Investment & Securities expects the global hydrogen market to expand. He said, "Since the EU's green hydrogen investment was confirmed, green hydrogen projects announced in less than a year have reached 17GW," and added, "At this rate, not only the EU's target of 40GW by 2030 but also a global green hydrogen supply chain of about 100GW or more is expected to be established."

He emphasized, "The Biden administration in the United States has also stated by key officials that hydrogen will be a major means to achieve carbon neutrality," and "Hydrogen, which was limited to three Asian countries, is on the verge of global expansion."

Along with this, expectations for growth are rising as Doosan Fuel Cell's business diversifies. He said, "The current business structure centered on PAFC for power generation is expanding to SOFC and PEMFC, and it is also entering the PEM-type water electrolysis business," adding, "This means that the valuation gap with global hydrogen companies conducting various businesses is likely to narrow." He continued, "Based on the world's most proactive support policies, Doosan Fuel Cell, which generates profits while growing, has high investment attractiveness."