[Click eStock] "Doosan Enerbility, SMR Order Increase... Long-term Growth Expected"

Target Price Set at 34,000 KRW

On the 21st, KB Securities presented a 'Buy' investment opinion and a target price of 34,000 KRW for Doosan Enerbility, forecasting performance growth due to increased orders for large nuclear power plants and Small Modular Reactors (SMRs).

Jung Hye-jung, a researcher at KB Securities, stated, "Doosan Enerbility's Enerbility division sales and operating profit are expected to grow at an average annual rate of 18.5% over the next five years." The target price represents a 27.8% upside potential compared to the closing price of 26,600 KRW on the 19th.

The growth drivers for Doosan Enerbility include ▲orders for 60 SMRs over the next five years ▲orders for eight large nuclear power plants between 2025 and 2029 ▲new entry into the gas turbine equipment market. Doosan Enerbility aims to achieve an order backlog of 20.6 trillion KRW in the nuclear power sector and 9.4 trillion KRW in the gas and hydrogen sectors by 2029.

Consolidated sales for this year are expected to be 15.8 trillion KRW, a 2.5% decrease from the previous year, but operating profit is projected to increase by 16.7% to 1.2 trillion KRW. In particular, sales in the Enerbility division are forecasted to slightly decrease to 6.7 trillion KRW (an 8.8% decline from the previous year), while operating profit is expected to rise by 50.1% to 365.6 billion KRW.

Researcher Jung said, "As low-margin construction sales in the coal and desalination sectors decrease, the proportion of sales related to nuclear power equipment and gas power generation will increase, improving profitability," adding, "The operating profit margin (OPM), which was 6.3% in 2024, is expected to rise by 1.2 percentage points to 7.5% in 2025."

Investment risk factors include uncertainties related to attempts to restructure the group’s governance, as well as potential changes in the introduction and scheduling of major domestic and international nuclear power plants.