Korea Stock Market Insights

Tag: Combined Cycle

  • Doosan Enerbility Divests Vietnam Subsidiary: A Strategic Move for Future Growth?

    1. What Happened? : Divestiture of Vietnam Subsidiary

    Doosan Enerbility will sell 100% of its stake in a Vietnamese subsidiary for 291.7 billion won on December 19, 2025. The subsidiary was engaged in the manufacturing of other machinery and equipment, which is not considered a core business for Doosan Enerbility.

    2. Why the Divestiture? : Securing Investment Funds for Core Businesses

    The primary goal of this divestiture is to secure funding for investments in core businesses. Doosan Enerbility is focusing on high-growth areas such as nuclear power, combined cycle power plants, and offshore wind power, which require significant investment.

    3. What’s the Impact? : Improved Financial Structure and Enhanced Growth Momentum

    • Financial Impact: The 291.7 billion won cash inflow will strengthen short-term financial soundness and provide a foundation for long-term profitability improvement.
    • Business Impact: Streamlining non-core businesses allows Doosan Enerbility to focus on core competencies and secure future growth drivers, enhancing its competitiveness in nuclear, combined cycle, and offshore wind power.
    • Market Impact: The market is likely to interpret this divestiture positively, viewing it as a demonstration of efficient resource allocation and commitment to future growth.

    4. What Should Investors Do? : Monitor Core Business Performance and Fund Allocation

    Investors should closely monitor the following:

    • How the secured funds are actually utilized
    • Order intake and profitability of core businesses such as nuclear power, combined cycle power plants, and offshore wind power
    • Macroeconomic variables such as international raw material prices, exchange rates, and interest rates

    Frequently Asked Questions

    What is the divestiture amount for the Vietnam subsidiary?

    291.7 billion won.

    What is the purpose of the divestiture?

    To secure funding for investments in core businesses.

    How will Doosan Enerbility’s business strategy change after the divestiture?

    The company plans to focus investments on core businesses like nuclear power, combined cycle power plants, and offshore wind power to strengthen future growth drivers.

  • BHIC Secures KRW 47.6B Contract with Doosan Enerbility: What’s Next for Investors?

    1. The KRW 47.6 Billion Contract: What’s it About?

    BHIC has signed a contract with Doosan Enerbility to supply LNG combined cycle power plant equipment worth KRW 47.6 billion. This represents approximately 11.8% of BHIC’s sales. The contract period runs from August 20, 2025, to June 30, 2028.

    2. Why is this Contract Important?

    This contract is expected to contribute to BHIC’s sales growth and business stability. Specifically, the contract with Doosan Enerbility, a major corporation, can serve as a testament to BHIC’s technological capabilities and credibility.

    3. What Does This Mean for the Stock Price?

    In the short term, it’s likely to act as a positive momentum for the stock price. However, BHIC faces fundamental issues such as high debt ratio and losses from overseas operations. Therefore, the long-term stock price trend will depend on whether the company can improve its fundamentals. External factors, such as fluctuations in exchange rates, interest rates, and raw material prices, can also influence the stock price.

    4. What Should Investors Do?

    Short-term investors should pay attention to supply and demand dynamics and news related to the contract. Long-term investors should closely monitor the improvement of fundamentals, strengthening of financial soundness, and management of overseas business risks.

    Frequently Asked Questions

    What is the size of the contract?

    KRW 47.6 billion, which is approximately 11.8% of BHIC’s sales.

    Who is the counterparty to the contract?

    Doosan Enerbility.

    Will this contract positively impact the stock price?

    It may be positive in the short term, but the long-term stock price trend depends on whether the company can improve its fundamentals.

    What precautions should investors take?

    Investors should carefully consider the company’s high debt ratio, losses from overseas operations, and external factors such as fluctuations in exchange rates, interest rates, and raw material prices.