[Click e-Stock] "Doosan Enerbility, Top Beneficiary of Nuclear Power and SMR Market Expansion"

Supplying Main Equipment for Both Nuclear Power Plants and SMRs
Additional Orders Expected

Doosan Enerbility is expected to be the biggest beneficiary of U.S. President Donald Trump's nuclear power policy. As the company plays a key role in supplying main equipment for both large-scale nuclear power plants and small modular reactors (SMRs), analysts predict that its performance could grow rapidly as the market expands.

On June 18, KB Securities raised its target price for Doosan Enerbility by 70.5% to 75,000 won and maintained its "Buy" rating, citing this background. The previous day's closing price was 59,400 won. The decision is based on the assessment that Doosan Enerbility can play a crucial role as global demand for nuclear power plants increases, including in the United States.

In May, President Trump signed an executive order to begin building 10 new large-scale nuclear power plants starting in 2030, aiming to quadruple the scale of nuclear power by 2050. This move demonstrates a pro-nuclear policy to secure energy security and leadership.

As a result, U.S. company Westinghouse is preparing to win new nuclear power plant contracts in the United States and is also participating in project bids in Europe. Its order backlog is expected to increase to more than 14 plants already secured. This is also positive for Doosan Enerbility, which supplies main nuclear power equipment to Westinghouse.

The Korean-type nuclear power plant is also expected to contribute to Doosan Enerbility's revenue as early as next year, following the final contract for the Dukovany nuclear power plant in the Czech Republic. Additional orders are also anticipated, including two domestic nuclear power plants confirmed in the 11th Basic Plan for Electricity Supply and Demand, as well as nuclear power projects in Poland and the Temelin nuclear power plant in the Czech Republic.

Growth in the SMR market, which is nearing commercialization, is also expected to accelerate. This is because the U.S. government is implementing policies to shorten the licensing period, which is likely to speed up the process. In May, the U.S. Nuclear Regulatory Commission (NRC) granted the sole approval for NuScale's SMR design. NuScale is currently working on a project in Romania, targeting commercial operation by 2030. Additional SMR project orders are also expected within this year. Doosan Enerbility has already produced SMR main equipment components for NuScale and is anticipating follow-up orders for assembly and manufacturing.

Jung Hyejeong, a researcher at KB Securities, explained, "Doosan Enerbility plans to invest 700 billion won to expand SMR module production by 2030," adding, "As a nuclear power foundry, Doosan Enerbility is expected to benefit from both nuclear power plants and SMRs, so its stock price is expected to rise in the mid- to long-term."

In the bidding for the new nuclear power plant in Dukovany, Czech Republic, "Team Korea," led by Korea Hydro & Nuclear Power and consisting of Doosan Enerbility, Daewoo Engineering & Construction, and Korea Electric Power Technology, was selected as the preferred negotiator, defeating the French Electric Utility (EDF). The photo was taken on the 18th at Doosan Tower, Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@