IBK Securities "BHI, Q2 Operating Profit Expected to Meet Market Expectations, Target Price ↑"

[Financial News]  IBK Investment & Securities predicted that BHI's Q2 operating profit will meet market expectations. Accordingly, the target price was raised from 37,000 won to 43,000 won, and the investment opinion was maintained as a buy.
On the 14th, researcher Kim Tae-hyun said, "The Q2 consolidated sales and operating profit are expected to be 141 billion won (+63.4% yoy) and 12 billion won (+100.4% yoy), respectively," adding, "Sales are expected to fall short of consensus, but operating profit is generally expected to meet expectations."
He continued, "With the revenue recognition of the Saudi project ordered last year, HRSG (Heat Recovery Steam Generator) sales are expected to increase by 125.1% (yoy), and sales of boilers and B.O.P (Balance of Plant) are expected to improve by 14.8% (yoy) and 37.5% (yoy), respectively," analyzing that "Q2 orders are expected to total 590 billion won, similar to Q1."
Researcher Kim added, "The cumulative orders of 1.2 trillion won in the first half correspond to about 81% of the annual order amount (1.5 trillion won) and this year's guidance (1.5 trillion won) for 2024," adding, "The order backlog after Q2 is expected to be 2.2 trillion won."
Regarding the second half performance, he said, "The growth expectation of the HRSG sector sales remains valid as the Luma2 & Nairiya2, Rabik2 power plant projects are newly reflected in the second half," predicting that "the order for nuclear auxiliary equipment related to Shin Hanul Units 3 and 4 (about 150 billion won) will be reflected in the performance from Q3, contributing about 30 billion won in annual sales until 2029."
IBK Securities predicted that according to the 11th Basic Plan for Electricity Supply and Demand (2025~38), the domestic LNG power generation facility capacity will expand by 60% to 69.2GW by 2038 compared to 2023 (43.2GW). He added, "As the global No. 1 player in HRSG, a key facility that increases the power generation efficiency of LNG power plants to about 60%, it is expected to continue to benefit for the time being."


kakim@fnnews.com Kim Kyung-ah Reporter