April 20, 2024

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[THE INVESTOR] Doosan Heavy Industries and Construction’s earnings may rebound but its financial situation could worsen, said Yuanta Securities on Nov. 6, downgrading the rating to a “hold” from a “buy” and lowering the target price to 18,000 won (US$16.10) from 24,000 won.

Its revenue and profitability in power generation could return to normal next year as construction of Shingori nuclear reactors resumes, and operating profit in heavy industries division will rise to 342.4 billion won from this year’s 241.7 billion won, forecast analyst Lee Jae-won.

Swelling of the department’s net borrowing to 4.5 trillion won, however, is weighing down the evaluation, noted the analyst, adding that the amount will not be significantly reduced next year. 

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