[Click e-Stock] "Doosan Enerbility's Order Streak Positive Amid Power Supply Shortages"

Target Price Maintained at 103,000 Won

On December 19, NH Investment & Securities maintained its target price of 103,000 won and a 'Buy' rating on Doosan Enerbility, stating, "Amid soaring electricity demand and ongoing supply shortages centered around data centers in the United States, the company is achieving order results across all sectors-including large-scale nuclear power plants, small modular reactors (SMRs), and gas turbines-that exceed market expectations."

Minjae Lee, a researcher at NH Investment & Securities, analyzed in a report released on the same day, "As the supply shortage of major power generation sources continues in the United States, Doosan Enerbility's new order volume is now accumulating in earnest." He particularly emphasized the severity of the supply shortage, noting that competitor GE Vernova is planning to sign a contract next year for large gas turbines that will be delivered through as late as 2035.

Doosan Enerbility has succeeded in winning several large-scale project orders just this month. In the large nuclear power plant sector, the main equipment order amount for the Dukovany project in the Czech Republic-including 4.9 trillion won for the nuclear steam supply system (NSSS) and 700 billion won for turbines-far exceeded the initial estimate of 4 trillion won. Lee predicted, "From next year, large-scale nuclear power plant projects to be ordered in the United States, Europe, and the Middle East are also expected to result in contracts of a similar scale."

In the SMR sector, a major achievement was the signing of a main equipment contract for 16 units with U.S. SMR developer X-energy. Lee highlighted, "The significance lies in the fact that the fourth-generation main equipment contract was signed at a similar time as the third generation," adding, "The project to be carried out by X-energy will take place in the United States, and potential customers have already been confirmed."

In the gas turbine sector as well, the company has been recognized for its balanced performance across all business areas, including securing orders for three large gas turbines from major North American big tech companies.

The outlook for next year is also positive. Lee explained, "As nuclear cooperation between South Korea and the United States strengthens, large-scale nuclear power plant orders-including those in the U.S.-are expected to accelerate in earnest. Major U.S. nuclear power companies such as Westinghouse, X-energy, and Holtec are also set to ramp up preparations for public listing." He added, "The U.S. government plans to inject funds secured through tariff negotiations with Japan into major projects to stimulate the nuclear power market."