[Click eStock] "Doosan Fuel Cell Expected to Expand Fuel Cell Sales in the U.S."

Maintaining a 50% Share of the Domestic Market... Turning Profitable Next Year
Expectations for Orders from U.S. HyAxiom

Doosan Fuel Cell is expected to accelerate its efforts to penetrate the U.S. market this year. Analysts predict that the company will attempt to improve its performance by manufacturing and selling fuel cells through its U.S. local subsidiary starting in the second half of the year.

On June 20, NH Investment & Securities raised its target price for Doosan Fuel Cell by 21.1% to 23,000 won, while maintaining its 'Buy' rating. The previous day's closing price was 19,400 won. The decision was based on expectations that this year's revenue will increase and net debt will decrease, leading to improved results.

NH Investment & Securities forecasts that Doosan Fuel Cell will post consolidated revenue of 589.7 billion won and an operating loss of 16 billion won this year. Although fuel cell prices are declining and the company is expected to remain in the red this year, the first quarter is seen as the bottom, with a recovery anticipated from the second quarter. Next year, revenue is expected to rise to 674.1 billion won, with a turnaround to profitability and an operating profit of 12.5 billion won.

The domestic hydrogen policy is expected to remain largely unchanged. Demand is expected to continue to be generated mainly through the general hydrogen bidding market. Even if the government changes its hydrogen policy, the scale of hydrogen power generation projects being carried out this year (175 to 180 MW annually) is not expected to change. This year, Doosan Fuel Cell is expected to win orders for about 90 MW, which is roughly half of the total domestic market.

The U.S. market was cited as a key opportunity. Doosan Fuel Cell plans to manufacture and sell fuel cells ordered by its U.S. fuel cell subsidiary, HyAxiom. Last year, HyAxiom secured orders for 30 MW of fuel cells. Although there is still inventory of fuel cells, production of HyAxiom-ordered fuel cells is expected to begin in the second half of this year. The U.S. fuel cell market is estimated to be about 2 gigawatts in size, and is growing at an annual rate of 15 to 20% as demand from data centers increases.

Jung Yeonseung, a researcher at NH Investment & Securities, explained, "While phosphoric acid fuel cells (PAFC) have lower power generation efficiency than solid oxide fuel cells (SOFC), their efficiency can be improved through cogeneration and waste heat utilization, and they can be sold to data centers or other markets. As electricity demand rises in the U.S., Doosan Fuel Cell is expected to win orders for more than 50 MW annually."