[Featured Stock] Doosan Fuel Cell Jumps Over 8% on Expectations of Overseas Orders

Doosan Fuel Cell shares are showing strong gains of over 8% on expectations of overseas orders.

As of 12:45 p.m. on the 12th, Doosan Fuel Cell was trading at 33,650 won, up 2,750 won (8.12%) from the previous trading day.

On this day, Shinhan Investment & Securities maintained its "buy" investment opinion and its target price of 55,000 won on Doosan Fuel Cell. Choi Gyuheon, senior researcher at Shinhan Investment & Securities, said, "Although the current weak earnings are disappointing, it is necessary to focus on the industry, which has clearly succeeded in a turnaround," adding, "New orders this year could exceed 200 MW."

Senior researcher Choi said, "On top of the 107 MW awarded under last year's Clean Hydrogen Energy Portfolio Standard (CHPS) and the 68 MW of awarded volume carried over into 2024, additional orders from overseas are expected," adding, "Attention should be paid to orders for data centers in the United States, and the company is currently in talks with one big tech company regarding PAFC (phosphoric acid fuel cell) systems for cooling."

He added, "Projects with data center operators other than big tech are also under discussion, and thanks to the smooth progress of the solid oxide fuel cell (SOFC) stack foundry business with one German company, it will likely be possible to secure meaningful volumes starting next year."

Senior researcher Choi explained, "On a consolidated basis, Doosan Fuel Cell's sales in the fourth quarter of last year were 135.8 billion won, and operating profit was minus 76.6 billion won, which fell far short of profit expectations," adding, "This was due to a higher cost ratio caused by rising raw material prices such as platinum, as well as an increase in fixed costs for SOFC."

This content was produced with the assistance of AI translation services.