[Click e-Stock] "Doosan, Value of Nuclear Power and Robotics Subsidiaries Rising"

Target Price Raised from 640,000 Won to 810,000 Won

On June 30, Daishin Securities raised its target price for Doosan from 640,000 won to 810,000 won, citing an increase in net asset value (NAV) driven by the share price gains of its key subsidiaries, Doosan Enerbility and Doosan Robotics. The investment opinion remains 'Buy'.

Recently, Doosan's share price has risen alongside other holding companies, as expectations for new government policies have brought increased attention to such firms. In addition, improvements in the performance of the electronics business group (BG), which has been highlighted since the end of last year, and the share price increases of its subsidiaries are also seen as positive factors for Doosan.

Yang Jiwhan, a researcher at Daishin Securities, stated, "Doosan Enerbility's share price has risen significantly due to several factors since the Trump administration took office: favorable U.S. policies toward nuclear power, the expansion of the global small modular reactor (SMR) market, and Korea's large-scale nuclear power plant orders." He added, "This trend is likely to continue, driven by positive outlooks for the global nuclear power market, expectations for additional large-scale nuclear power plant orders, and the expansion of the SMR market."

Doosan's electronics BG sales in the second quarter are estimated to increase compared to the first quarter. Yang explained, "Electronics BG recorded sales of 402.9 billion won in the first quarter, and second-quarter sales are expected to reach 411.6 billion won, with the average monthly sales flow estimated to have increased slightly compared to the first quarter." He added, "Investors have expressed concerns about the recent decline in exchange rates and raw material supply, but these appear to have little impact." He also noted that both sales and costs are recognized in U.S. dollars, so exchange rate fluctuations do not affect profitability, and raw material supply remains stable.

Yang further commented, "Regarding the expansion of electronics BG's production capacity (CAPA), the copper-clad laminate (CCL) for network boards, which currently accounts for about 60% of sales, is expected to see a roughly 50% capacity increase." He added, "The recently completed Gimje plant is intended for the production of flexible copper-clad laminate (FCCL) and is not related to CCL."