[Click eStock] "Bumhan Fuel Cell, Confidence Backed by Fundamentals... CPSP Order Anticipated"

On January 15, Hana Securities analyzed that Bumhan Fuel Cell is enhancing its mid- to long-term growth visibility, supported by a stable order base centered on submarine fuel cells and the expansion of its liquefied hydrogen charging station business.

Yoo Geon Han, a researcher at Hana Securities, introduced, "Bumhan Fuel Cell is the only company in Korea that manufactures submarine fuel cells," and added, "It has secured a rare, stable revenue structure and profitability within the hydrogen fuel cell industry."

Bumhan Fuel Cell specializes in hydrogen fuel cells, with a primary focus on polymer electrolyte membrane fuel cells (PEMFC). Based on its PEMFC technology, which is closest to commercialization, the company supplies fuel cell modules for mobility sectors such as ships, submarines, and buses, as well as for buildings and power generation. Its key clients include Hanwha Ocean, HD Hyundai Heavy Industries, SK E&S, Hyundai Steel, and Samsung Heavy Industries. As of the third quarter of last year, the revenue breakdown by business segment was 50% from fuel cells, 28% from hydrogen charging stations, and 22% from other sources.

The company's exclusive position in the submarine fuel cell sector underpins its mid- to long-term earnings stability. Han noted, "Bumhan Fuel Cell is the exclusive supplier of hydrogen fuel cells for the Jangbogo-III class submarines," and projected, "Annual sales of approximately 20 billion won are expected to be generated in the medium term." He further anticipated, "This year, revenue will continue to be recognized as construction progresses on the second and third Jangbogo-III Batch-II submarines."

There is also a valid expectation for large-scale global orders. The Canadian next-generation submarine project (CPSP) involves the procurement of up to 12 diesel submarines of at least 3,000 tons, with the contract value alone estimated at around 20 trillion won, and including maintenance, repair, and operations (MRO), the total project size reaches about 60 trillion won. Currently, the Korean consortium, which includes Hanwha Ocean and HD Hyundai Heavy Industries, is scheduled to submit its final proposal in March 2026 and expects to receive the final selection results within the first half of the year.

Han stated, "Given the consortium's technological maturity and delivery competitiveness, the likelihood of winning the order is high." He forecasted, "If successful, Bumhan Fuel Cell will secure at least 360 billion won in mid- to long-term revenue by supplying the specified fuel cell modules." He also expects additional global order opportunities to follow, including 2,000-ton class submarine projects in Peru, Saudi Arabia, and Southeast Asia.

The liquefied hydrogen charging station business has also been evaluated as a pillar supporting earnings stability. Bumhan Fuel Cell has secured contracts for eight liquefied hydrogen charging stations. Some revenue was recognized in the fourth quarter of last year, with the remainder to be recognized this year. Of the total contract value of 67.6 billion won, approximately 55 billion won is expected to be reflected as revenue. In the mid- to long-term, the company is expected to benefit from the hydrogen economy activation roadmap, which projects the number of hydrogen charging stations in Korea to increase from about 450 in 2025 to 1,200 by 2040, providing a foundation for sustained growth.

Hana Securities estimates that Bumhan Fuel Cell will achieve consolidated sales of 90.98 billion won and operating profit of 7.54 billion won this year, representing increases of 124.7% and 163.6%, respectively, compared to last year. The simultaneous expansion of stable revenue from the fuel cell business and sales from liquefied hydrogen charging stations is expected to drive significant growth in both scale and profitability.

Han explained, "Bumhan Fuel Cell is a rare company within the hydrogen industry that has secured both stable top-line growth and profitability," and added, "Through synergy with other affiliates of the Bumhan Group, it will be able to continue its unique business expansion strategy."