[Special Stock] BHI Rises 8.98% on Strong Q1 Earnings Outlook

The stock price of BHI is on the rise, driven by solid order intake and expectations of better-than-expected results for the first quarter of this year.

As of 10:49 a.m. on the 29th, BHI was trading at 27,900 won, up 2,300 won (8.98%) from the previous trading day.

On this day, IBK Investment & Securities announced, "We are raising our earnings estimates for this year," and increased its target price for BHI from 28,000 won to 30,000 won. The company also maintained its buy rating. For the first quarter of this year, consolidated revenue and operating profit are expected to reach 135.4 billion won and 8.9 billion won, respectively, representing increases of 85.2% and 153.8% compared to the same period last year, and surpassing the market consensus.

First of all, revenue recognition from the HRSG (Heat Recovery Steam Generator) related to the Saudi project, which was ordered in the first half of last year, is expected to drive the improvement in results. New orders in the first quarter are expected to reach approximately 600 billion won, which is about 40% of last year's annual order amount (1.4841 trillion won). The order backlog after the first quarter is projected to be 2.5 trillion won.

Kim Taehyun, a researcher at IBK Investment & Securities, stated, "On the 25th, BHI signed a contract worth 517.7 billion won to supply coal boilers to a Philippine utility company," adding, "In the Southeast Asian market, where natural gas and renewable infrastructure are lacking, demand for coal-fired power generation remains high, so expectations for additional orders are valid."

He further explained, "Growth momentum is also forming in the previously sluggish boiler segment," adding, "The order amount for nuclear auxiliary equipment (B.O.P) related to Shin Hanul Units 3·4 is about 150 billion won, and revenue will be recognized from the third quarter, with approximately 30 billion won reflected annually until 2029."