Doosan Fuel Cell (336260.KS) surged in intraday trading after winning a large fuel cell contract to supply a data center in the United States.
The stock traded at 50,700 won as of 1:50 p.m. on the 7th, up 14.94%, or 6,550 won, from the previous session, according to the Korea Exchange.
Analysts said the gain reflects expectations that the large U.S. data center order will significantly improve the company's earnings.
Doosan Fuel Cell signed a 501.4 billion won contract to supply phosphoric acid fuel cells (PAFC) through HyAxiom, its U.S. affiliate. The end customer was not disclosed, but the units are understood to be destined for a data center in the United States.
NH Investment & Securities estimated the order at about 140 megawatts, far exceeding its earlier projection of 50 MW. Given the volume, the brokerage said the fuel cells are likely to serve as the data center's primary power source rather than as backup or supplementary power.
Brokerages sharply raised their earnings outlook for Doosan Fuel Cell following the order. NH Investment & Securities upgraded the stock to Buy from Hold and lifted its target price 70.6% to 58,000 won from 34,000 won.
The brokerage raised its revenue forecast for next year 31.9% to 882.1 billion won from 668.9 billion won. That would mark an 80.5% increase from this year's projected revenue of 488.8 billion won. It expects the company to swing to an operating profit of 40.4 billion won in 2027.
"This order confirms that PAFC, despite its relatively lower power generation efficiency, can enter the data center market on the strength of robust on-site power demand in the United States," said Jung Yeon-seung, an analyst at NH Investment & Securities.
The potential for additional orders is also drawing attention. Doosan Fuel Cell currently has annual production capacity of 275 MW for PAFC and 50 MW for solid oxide fuel cells (SOFC). Once an expansion of its PAFC production line is completed, annual capacity is set to rise to 350 MW.
Even assuming annual PAFC output of about 100 MW for the domestic market and 100 to 120 MW for the United States, that capacity would leave room to absorb more than 100 MW in additional orders each year.
