Korea Stock Market Insights

Tag: Iljin Power

  • Iljin Power Secures $17.6M Contract with Doosan Enerbility: Investment Opportunity?

    Iljin Power Secures $17.6M Contract with Doosan Enerbility: Investment Opportunity? 대표 차트 이미지

    Iljin Power and Doosan Enerbility’s $17.6M Deal: What Happened?

    Iljin Power signed a $17.6 million contract with Doosan Enerbility on August 25, 2025, to supply Cernavoda TRF (Tritium Removal Facility) LPCE System. This represents 12.35% of Iljin Power’s 2024 revenue and will run until January 21, 2027.

    What’s the Significance and Background of the Contract?

    This contract showcases Iljin Power’s capabilities in the nuclear power sector. Doosan Enerbility is a leading plant company in Korea and a key client of Iljin Power. Supplying core components for nuclear power plants is expected to contribute not only to short-term sales growth but also to securing long-term growth momentum. It’s particularly significant as it could signal a recovery in the underperforming nuclear business segment. However, with Iljin Power’s recent struggles with profitability and subsidiary performance, it remains to be seen whether this contract will translate into substantial growth.

    So, What Should Investors Do?

    While this contract is a positive sign, investors should proceed with caution. Several factors need consideration, including contract profitability, volatility in the nuclear industry, and fluctuations in exchange rates and raw material prices. Maintaining a ‘Neutral’ investment outlook based on existing fundamental analysis, investors should closely monitor the following:

    • Concrete profitability and implementation of the contract
    • Potential for additional orders in the nuclear business
    • Performance and revenue contribution of new businesses (fuel cells, nuclear fusion)
    • Improvement in overall profitability indicators

    Frequently Asked Questions

    What is the value of this contract?

    $17.6 million, representing 12.35% of Iljin Power’s 2024 revenue.

    Who is the counterparty to the contract?

    Doosan Enerbility, a leading plant company in Korea.

    What is the main content of the contract?

    Supply of Cernavoda TRF (Tritium Removal Facility) LPCE System.

    What is the investment outlook?

    Positive, but investors should proceed with caution considering profitability and other factors. The investment outlook is ‘Neutral’.

    Iljin Power Secures $17.6M Contract with Doosan Enerbility: Investment Opportunity? 관련 이미지
    Iljin Power Secures $17.6M Contract with Doosan Enerbility: Investment Opportunity? 관련 이미지

  • Iljin Power Q2 2025 Earnings Analysis: Growth Potential Amidst Nuclear Business Losses?

    1. What Happened?: Iljin Power Q2 Earnings Analysis

    Iljin Power maintained stable growth in Q2 2025, with a slight increase in revenue compared to the same period last year. The solid performance of the power generation business drove growth, but the widening losses in the nuclear business are a concern.

    2. Why?: Analyzing the Causes of Earnings Fluctuations

    • Power Generation Business: Steady growth driven by increasing demand for maintenance of aging and new power plants.
    • Nuclear Business: Widening losses due to investments in overseas nuclear power plant construction and SMR-related technology development.
    • New Growth Business: Investments are underway to secure future growth engines such as fuel cells and hydrogen plants, but no revenue has been generated yet.
    • Chemical/Plant Division (Iljin Energy): Stable revenue through stable order management.

    3. So What?: Future Outlook and Investment Strategies

    Iljin Power is pursuing business diversification into nuclear and renewable energy based on its stable power generation business. While the long-term growth potential is high, the key variables are whether the nuclear business can improve profitability and whether the new growth businesses can show tangible results. Currently, a ‘wait-and-see’ approach is recommended, with close monitoring of new business performance and market environment changes.

    4. Investor Action Plan

    Investors should consider the following factors when making investment decisions:

    • Whether the nuclear business can improve profitability
    • Performance of new growth businesses
    • External environmental factors such as global economic slowdown, raw material price volatility, and exchange rate fluctuations

    Careful monitoring and adjusting investment timing are crucial.

    What are Iljin Power’s main businesses?

    Iljin Power’s main businesses are power plant maintenance, nuclear energy, renewable energy, and chemical plants.

    How was Iljin Power’s performance in Q2 2025?

    Revenue slightly increased compared to the same period last year, but the overall result was mixed due to widening losses in the nuclear business.

    What is the investment strategy for Iljin Power?

    While there is long-term growth potential, a ‘wait-and-see’ approach is currently recommended. Close monitoring of the nuclear business’s profitability and the performance of new growth businesses is essential.

  • Iljin Power Q2 2025 Earnings Surprise: A Deep Dive and Investment Strategies

    1. What Happened?

    Iljin Power reported Q2 2025 revenue of ₩75.7 billion (up 75.2% YoY), operating profit of ₩6.2 billion (up 106.7% YoY), and net income of ₩5.5 billion. These figures significantly exceeded market expectations, marking a substantial earnings surprise.

    2. Why Did This Happen?

    The strong performance was primarily driven by steady growth in the Power Generation (60.2%) and Chemical Equipment/Plant (32.0%) divisions. Notably, the operating profit margin improved significantly to approximately 8.2%, compared to the previous quarter and the same period last year.

    3. What’s Next?

    This earnings surprise is likely to act as a short-term catalyst for stock price appreciation. However, the long-term outlook depends on the sustainability of this improved performance and the successful execution of Iljin Power’s new growth initiatives in nuclear and renewable energy sectors. The company’s debt-to-equity ratio, currently above 120%, requires ongoing monitoring. Macroeconomic factors, including fluctuations in exchange rates, interest rates, and raw material prices, should also be considered.

    4. What Should Investors Do?

    • Short-term investors: Can capitalize on the positive momentum generated by the earnings surprise, but should be mindful of increased volatility.
    • Long-term investors: Should carefully evaluate the sustainability of earnings growth, the progress of new growth initiatives, and the company’s financial stability before making investment decisions.
    Why are Iljin Power’s Q2 earnings important?

    The earnings surprise significantly exceeded market expectations, making it a key indicator for future stock performance and providing insights into the company’s growth potential and future outlook.

    What are Iljin Power’s main businesses?

    Iljin Power operates in Power Generation, Chemical Equipment/Plant, Nuclear Energy, and Renewable Energy sectors.

    What should investors consider when investing in Iljin Power?

    Investors should monitor short-term volatility and consider long-term factors like sustained earnings growth, successful new growth initiatives, financial stability, and macroeconomic conditions.

  • Iljin Power: Delisting Crisis Averted? Investment Strategies After Avoiding Delisting Review

    1. What Happened? Delisting Review Exemption

    On July 22, 2025, Iljin Power announced the positive news of its exemption from the delisting review. This means the worst-case scenario of delisting has been avoided, and trading is expected to resume on July 23rd.

    2. Why Does It Matter? Reduced Uncertainty, Improved Investor Sentiment

    This decision removes the uncertainty surrounding Iljin Power’s listing status, which has been weighing down the stock price. It’s expected to improve investor sentiment and potentially create upward momentum for the stock.

    3. What’s the Company’s Situation? Q1 Earnings Slump and New Business Ventures

    Despite the positive news, the Q1 earnings were disappointing. The decline in sales and profitability raises concerns for investors. However, the active investment in renewable energy could offer long-term growth potential.

    • Strengths: Diversification into renewable energy, healthy short-term liquidity
    • Weaknesses: Weak Q1 earnings, pending lawsuits
    • Opportunities: Government support for renewable energy policies
    • Threats: Volatility of raw material prices, increased competition

    4. What’s the Outlook? Short-Term Gains, Long-Term Uncertainty

    In the short term, the stock price is expected to rise following the delisting exemption. However, the long-term trend will depend heavily on the success of the renewable energy business and macroeconomic conditions.

    5. What Should Investors Do? Proceed with Caution

    Investors should not be swayed by short-term price fluctuations and should carefully analyze the progress of the renewable energy business and future earnings prospects. It’s also crucial to monitor the outcome of the pending lawsuits and macroeconomic variables.

    Frequently Asked Questions

    Is Iljin Power completely safe from delisting?

    Yes, with the exemption from the delisting review, the possibility of delisting is currently very low. However, future management issues or legal problems could trigger another review, so ongoing monitoring is necessary.

    What is the outlook for the renewable energy business?

    While there is long-term growth potential, the business has yet to achieve profitability. Success will depend on various factors such as government policies, technological advancements, and market competition.

    What should investors be cautious about?

    Be mindful of short-term price volatility and carefully analyze the reasons for the weak Q1 earnings and the potential for improvement. It’s important to monitor the progress of the renewable energy business and the outcome of pending lawsuits.