April 25, 2024

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[THE INVESTOR] Despite the slow industry Doosan Heavy Industries’ operating income this year will turn around based on the stable generation facilities market, said Mirae Asset Daewoo on Feb. 17, maintaining a “buy” recommendation and 38,000 won (US$33.24) target price.

In the fourth quarter last year its financial performance failed to meet expectations but its revenue improved for the first time in 16 quarters, showing stabilized profitability, said analyst Seong Gi-jong.

Doosan’s order backlog is 20.53 trillion won and has been on the rise for three consecutive years. Its operating income from heavy industries will turn upward this year, forecast the analyst. 

The company’s orders are likely to meet the 10.6 trillion won target this year and will steadily grow over the next few years, said Seong, adding that Doosan Heavy should be reevaluated on a standalone basis.

By Hwang You-mee (glamazon@heraldcorp.com)