Doosan’s big comeback: What’s behind the stock boom?

Nuclear power stations in Dukovany, Czech Republic / Courtesy of Korea Hydro & Nuclear Power

In 2020, creditor banks — including the Korea Development Bank and the Export-Import Bank of Korea — called on Doosan to implement sweeping self-rescue measures, including the sale of key affiliates.

The company agreed, embarking on a major restructuring and divested assets worth approximately 3 trillion won ($2.2 billion) over a two-year period.

Now, Doosan, one of Korea's oldest conglomerates with a 128-year history, is staging a strong comeback in the stock market.

Doosan Enerbility, Korea's leading power plant builder, has emerged as the primary driver of the group’s rally this year. Its share price has jumped 160.5 percent, rising from 17,550 won at the end of December to 45,700 won as of Thursday.

The stock also spiked 7.62 percent on news that the company signed a final contract for a 26 trillion-won nuclear power plant project in the Czech Republic. During intraday trading, it even reached a 52-week high of 45,800 won.

The rally is being fueled by a global policy shift toward nuclear energy.

In the U.S., President Donald Trump signed an executive order to revive the domestic nuclear industry, pledging to begin construction on 10 large-scale plants by 2030. Meanwhile, even Germany — long opposed to nuclear power — has reversed its stance in response to energy security concerns.

"In addition to the Czech deal, further positive developments — such as a potential contract for a small modular reactor project in Romania — are expected to be announced, supporting continued strength," said Eugene Investment & Securities analyst Hwang Sung-hyun.

Doosan Corporation, the group’s holding company, has also experienced a sharp rally. Its share price has doubled from 255,000 won at the end of last year to 549,000 won as of Thursday, marking a 115.3 percent gain.

Its gains reflect growing investor expectations for enhanced shareholder return policies following the presidential election — a sentiment that has buoyed major holding companies across the board.

Stronger performance in Doosan's core businesses, particularly its electronics division, is also contributing to the momentum. The group manufactures copper-clad laminates, a key component in printed circuit boards. Market analysts expect operating margins to improve further amid rising demand linked to Nvidia’s robust sales growth.

"Doosan remains our top pick among holding companies, given the momentum for earnings improvement in core business segments and the potential equity upside from the expanding nuclear and robotics markets," said Daishin Securities analyst Yang Ji-hwan.