"Doosan Enerbility to Optimize Portfolio Amid Rising AI Power Demand," Samsung Securities Says

[Financial News] An analysis has found that Doosan Enerbility will directly benefit from increased power demand driven by AI data centers, based on its business structure spanning nuclear power and gas turbines. The company is seen as capable of responding simultaneously to demand for nuclear power, which provides a stable electricity supply, and LNG power generation, which offsets fluctuations in renewable energy output.
Kim Young-ho, an analyst at Samsung Securities, said in a report on the 1st, "Doosan Enerbility has secured a business portfolio optimized for the trend of rising power demand from AI data centers, spanning nuclear power to gas turbines."
In the nuclear power sector, the company's ability to manufacture a broad range of major equipment was cited as a key strength. Doosan Enerbility can produce equipment for both the primary systems of nuclear plants, including reactors and steam generators, and the secondary systems, including steam turbines and generators. As interest grows in nuclear power as a carbon-free baseload source amid concerns over energy security, the spread of AI and tighter environmental regulations, opportunities to supply related equipment are also expected to increase.
Analyst Kim assessed that "the global nuclear power supply chain has shrunk due to the prolonged anti-nuclear policy trend of the 2010s, easing competition compared with the past." He expected the expansion of nuclear power in South Korea and overseas orders, driven by upward revisions to power demand forecasts, to fuel business growth. Collaboration with small modular reactor developers was also highlighted. Doosan Enerbility is working with NuScale Power and X-energy. The company is expected to strengthen its competitiveness not only in large-scale nuclear plants but also in the manufacturing of next-generation reactors.
Gas turbines are also considered another growth engine. While nuclear power provides a continuous electricity supply, LNG generation can offset fluctuations in output from solar and wind power. Doosan Enerbility's entry into the global gas turbine market, which is dominated by Siemens, GE Vernova and Mitsubishi, is another factor raising expectations for additional orders. Analyst Kim forecast that "approximately 37 of the coal-fired power plants currently operating in South Korea are scheduled to be converted to LNG power plants by 2036," adding that further orders at home and abroad are expected to follow.
Samsung Securities estimated Doosan Enerbility's consolidated revenue this year at 19.139 trillion won and its operating profit at 1.241 trillion won. These figures represent year-over-year increases of 12.2% and 62.7%, respectively. The company is also expected to maintain its growth momentum next year, with revenue projected at 21.159 trillion won and operating profit at 1.883 trillion won. Accordingly, its consolidated operating margin is forecast to rise from 6.5% this year to 8.9% next year.
[email protected] Won-il Jung Reporter