Doosan Fuel Cell recorded Q2 operating loss of 50.4 billion KRW and revenue of 44.3 billion KRW, missing market consensus due to project delivery delays. Meritz Securities maintained its Buy rating and 76,000 KRW target price on expectations of H2 recovery. Researcher Moon Kyung-won stated that some project deliveries were delayed to the next quarter, pushing back revenue recognition, while stack replacement costs of approximately 30 billion KRW also widened losses in Q2. The brokerage expects H2 performance to improve as domestic CHPS-related orders and revenue recognition are concentrated in the second half, with annual revenue outlook changes remaining limited.
Doosan Fuel Cell Reports Q2 Operating Loss of 50.4 Billion KRW
Doosan Fuel Cell's Q2 consolidated operating loss reached 50.4 billion KRW, falling short of market consensus of -23.6 billion KRW. Revenue totaled 44.3 billion KRW, significantly below the consensus of 131.8 billion KRW. The company also reflected stack replacement costs of approximately 30 billion KRW in Q2, which expanded the loss.
Stack Replacement Costs to Decrease Significantly from 2027
Meritz Securities expects similar levels of stack replacement costs to be reflected in H2 as in H1. However, the brokerage anticipates that the burden of related costs will decrease significantly from 2027.
Meritz Securities Expects H2 Recovery from CHPS Orders
Moon Kyung-won stated that changes to the annual revenue forecast are limited because domestic CHPS orders and revenue recognition are concentrated in H2. The analyst noted that some project deliveries were delayed to the next quarter, which postponed revenue recognition.
US Data Center PAFC Project Contract Imminent
The researcher explained that the PAFC US data center order remains valid, stating that while the timeline was slightly delayed from initial expectations, no particular issues have arisen and the final contract appears imminent.
SOFC Main Contract with German Customer Expected Q3
Doosan Fuel Cell has completed negotiations on major terms of a stack supply contract with a German customer. Meritz Securities expects the agreement to lead to a main contract in Q3, with SOFC stack production anticipated to begin from Q3.
Bloom Energy Supply Chain Issues Viewed as Opportunity
Moon Kyung-won analyzed that recent Bloom Energy supply chain issues are a neutral matter or even an opportunity for Doosan Fuel Cell. The analyst stated that the fact that the stock price fell in tandem feels irrational and could be viewed as an investment opportunity.
Doosan Fuel Cell Repaid Bonds Maturing July 10
Doosan Fuel Cell repaid all corporate bonds that matured on July 10. Meritz Securities explained that while there are no immediate additional fundraising plans, funding may be needed in the future depending on the order situation.
FAQ
What were Doosan Fuel Cell's Q2 financial results?
Doosan Fuel Cell recorded Q2 operating loss of 50.4 billion KRW and revenue of 44.3 billion KRW, both missing market consensus due to project delivery delays and stack replacement costs of approximately 30 billion KRW.
Why does Meritz Securities expect H2 recovery for Doosan Fuel Cell?
Meritz Securities expects H2 recovery because domestic CHPS-related orders and revenue recognition are concentrated in the second half, with researcher Moon Kyung-won stating that annual revenue forecast changes remain limited despite Q2 underperformance.
What is the status of Doosan Fuel Cell's US data center project?
Researcher Moon Kyung-won stated that the PAFC US data center order remains valid, with the final contract appearing imminent despite a slight delay from initial expectations, and no particular issues having arisen.
