[Click eStock] Doosan, Expected Resolution of Uncertainty as Restructuring Nears Completion... Target Price Upward Revision

[Asia Economy Reporter Song Hwajeong] On the 6th, Hi Investment & Securities raised the target price for Doosan from the previous 113,000 KRW to 153,000 KRW, viewing that the Doosan Group's restructuring is in its final stages and that uncertainties regarding future restructuring will be resolved. The investment opinion was maintained as 'Buy.'

Lee Sangheon, a researcher at Hi Investment & Securities, said, "With the Doosan Group restructuring in its final stages, not only will uncertainties be resolved, but under an environment where the financial structure is improving, the future performance turnaround and growth potential of new business subsidiaries can become visible."

Last year, to overcome the liquidity crisis of Doosan Heavy Industries & Construction, the Doosan Group received an emergency support of 3.6 trillion KRW from creditors and prepared and is implementing a financial structure improvement plan worth 3 trillion KRW, including asset and subsidiary sales and capital increases. Doosan secured liquidity by selling Doosan Tower, Neoplux, and Doosan Solus last year, and based on these funds, invested 435.2 billion KRW in Doosan Heavy Industries & Construction in December last year. Additionally, this year, they completed the sale of the Motrol business division, invested in Doosan Fuel Cell shares in Doosan Heavy Industries & Construction, and sold the industrial vehicle business to Doosan Bobcat.

In the case of Doosan Heavy Industries & Construction, they sold the Club Mow golf course last year and repaid emergency loans through a capital increase of 1.2125 trillion KRW in December. This year, Doosan Heavy Industries & Construction absorbed and merged the investment division of Doosan Infracore, acquiring shares of Doosan Bobcat, while also completing the sale of Doosan Infracore's business division. The management rights of Doosan Construction are scheduled to be acquired by The Genesis Holdings Limited Partnership. On the 26th of last month, Doosan Heavy Industries & Construction held a board meeting and decided to conduct a capital increase worth 1.5 trillion KRW. Of the raised funds, 700 billion KRW will be used for debt repayment, with 300 billion KRW allocated to the hydrogen turbine sector and 200 billion KRW to offshore wind power by 2026. Additionally, funds will be invested in small modular reactors (SMR), fuel cells, hydropower, and solar power.

Researcher Lee said, "Through Doosan Heavy Industries & Construction's capital increase, the debt ratio is expected to decrease, improving the financial structure. Moreover, securing investment funds lays the foundation for becoming an eco-friendly energy company, which will enhance sustainability and other factors." He analyzed, "Above all, an environment has been created where the Doosan Group can graduate early from creditor management."