[Click eStock] Doosan Fuel Cell, Full of Events in the Second Half 'Maintaining Buy Recommendation'

[Asia Economy Reporter Lee Seon-ae] Samsung Securities announced on the 14th that there are several notable events for Doosan Fuel Cell in the second half of the year, maintaining a 'Buy' investment rating and a target price of 62,000 KRW.

Im Eun-young, a researcher at Samsung Securities, stated, "In the first half of the year, new orders and performance were sluggish due to the delayed introduction of the expected HPS (Hydrogen Portfolio Standard: mandatory hydrogen power generation ratio)," adding, "In the second half, events such as the amendment of laws for policy introduction, expansion of the company's network, and changes in the profit and loss structure, which are internal and external factors determining the company's growth, are expected."

First, on the 1st, a bill to amend the Hydrogen Economy Promotion and Safety Management Act was proposed. The content includes obligations for hydrogen power generation and sales, as well as penalty provisions. If passed by the National Assembly plenary session, it is expected to be announced in the fourth quarter after enforcement ordinances.

Doosan Fuel Cell is developing fuel cells (SOFC) with the UK company Seres Power, with plans for commercialization in 2024. The main market for SOFC technology is seen as ships, and a joint development agreement for ship fuel cells has also been signed with Hyundai Heavy Industries.

There is also a possibility of acquiring Doosan Fuel Cell America. Doosan Fuel Cell currently pays royalties at the level of 2.5-3% of sales. Ahead of a large-scale order period, acquiring Doosan Fuel Cell America would be positive for the profit and loss structure and is expected to free the company from concerns about Doosan Group's governance risk.