[Click eStock] "BHI, Boom Period Continues... Earnings Growth Expected"

Daishin Securities analyzed on the 5th that BH Hi is expected to continue its performance growth due to ongoing order wins. No investment opinion or target price was provided.

BH Hi recorded sales of 440.8 billion KRW and an operating profit of 23.4 billion KRW last year, representing increases of 10% and 5.8% respectively compared to the previous year. Jangwook Park, a researcher at Daishin Securities, stated, "Last year, new orders reached 1.4 trillion KRW," adding, "Large-scale orders were recorded for the Middle East and Asia markets."

As the global gas power plant equipment capacity steadily grows, BH Hi is expected to benefit as well. Researcher Park explained, "Since the Russia-Ukraine war, the need to improve gas usage efficiency has increased," and added, "Due to increased investment in renewable energy, backup power for load response, and the conversion of coal power plants to gas power plants, benefits are expected regardless of the continuation of eco-friendly policies."

Performance growth is also expected to continue this year. The projected sales and operating profit for this year are 644.7 billion KRW and 38.7 billion KRW, respectively, representing increases of 59.3% and 65.3% compared to the previous year. Researcher Park said, "This year, sales are expected to be 3.1 times the order backlog and 1.5 times the new orders, indicating that the boom period will continue," and added, "Although there is valuation pressure due to the recent stock price increase with a projected price-to-earnings ratio (PER) of 15.7 times in 2026, it is expected to gradually ease with a projected PER of 8.9 times in 2027."