BHI (083650): Robust Topline Driven by Core Power Infrastructure and Mid-Term Gains via Expanding Global Order Backlog

• Source Facts: IBK Investment & Securities Research Center (Based on the report published on July 3, 2026)
• Investment Opinion & Target Price: BUY Maintained / Target Price Revised to KRW 110,000
• Key Momentum: Quarterly consolidated performance projected to beat market expectations, backed by accelerating revenue conversion across gas-fired and nuclear power sub-components.

📊 1. [Valuation Metrics and Investment Indicator Analysis]

Key Investment & Valuation Architecture (Focusing on 2026F Forecasts)

• Target Price Derivation Matrix: The target formulation embeds BHI’s multi-year peak order backlog triggered by resilient international project additions. Reflecting the broad valuation contraction across the KOSDAQ market, the target EV/EBITDA multiple was adjusted downward to 24.8x (removing the previous 50% premium allocation), leading to a revised target price of KRW 110,000 from the previous KRW 140,000.
• Valuation Multiples: For 2026F, the company’s estimated P/E ratio stands at 26.5x, P/B ratio at 7.5x, and EV/EBITDA at 13.5x.
• Profitability Stability Metrics: BHI is expected to demonstrate highly efficient operations, with its 2026F operating profit margin forecast at 10.7% and Return on Equity (ROE) hitting a substantial 33.1%.

Annual Earnings Forecast Trends

• Revenue: KRW 405 billion in 2024 $\rightarrow$ KRW 774 billion in 2025 $\rightarrow$ KRW 1,257 billion in 2026F (YoY +62.3%)
• Operating Profit: KRW 22 billion in 2024 $\rightarrow$ KRW 75 billion in 2025 $\rightarrow$ KRW 135 billion in 2026F (YoY +78.4%)
• Net Profit (Controlling Interest): Shifting from KRW 65 billion in 2025 to KRW 70 billion in 2026F, and forecasted to advance to KRW 122 billion by 2027F.

🚀 2. [Market Opportunity (TAM) and Detailed Earnings Estimates]

Quarterly Trajectory and Business Segment Execution Visibility

• Q2 Consolidated Outlook: BHI’s 2Q26 consolidated revenue is forecasted to hit KRW 272.6 billion (+61.0% YoY) and operating profit is projected at KRW 35.2 billion (+72.5% YoY), surpassing the street consensus benchmarks of KRW 247.8 billion and KRW 29.7 billion.
• HRSG (Heat Recovery Steam Generator) Division: As a pivotal component of combined-cycle power facilities, the HRSG division’s Q2 revenue is estimated to grow to KRW 170.6 billion (+65.1% YoY). Progress recognition from overseas milestones, including Saudi Arabian LNG thermal power builds, remains supportive alongside new structural supply wins such as the KRW 18.8 billion contract signed with TPSC.
• Boiler & Balance of Plant (B.O.P) Divisions:
  • The boiler segment is supported by the ongoing layout execution of the KRW 517.7 billion utility contract in the Philippines, propelling Q2 revenue to KRW 50.5 billion (+85.6% YoY) and locking in a recurring revenue runway for the next 3 to 4 years.
  • The nuclear B.O.P line items are tracking high growth momentum as equipment distributions—such as containment liners and stainless steel components for the Shin-Hanul Units 3 & 4—commence in earnest, driving Q2 sub-revenue to KRW 8.7 billion (+1,019.6% YoY).
• Net Margin Friction Elements: Despite robust operational execution and expanding transaction volume, short-term volatility in net profits may surface due to underlying non-operating transactional friction stemming from foreign exchange derivative valuation losses.

📝 Editor Comment

BHI’s market pricing has endured correlation-driven adjustments relative to the broader KOSDAQ tech drawdown, yet its underlying business backlog metrics and multi-year structural revenue visibility have converged into their strongest cycle yet. BHI’s global leading footprint in the premium HRSG vertical puts it at the forefront of natural gas baseload integration worldwide. Furthermore, the structural overlap of multi-year infrastructure delivery pipelines in the Philippines with high-margin domestic nuclear auxiliary integrations acts as an insulating operational layer. Even if non-operating currency provisions induce short-term noise on the net income line, the sequential expansion of core operating profit margin from 9.7% in 2025 to 10.7% in 2026F clearly signifies an internal shift toward high-margin generation that anchors its premium fundamental valuation thesis.

📢 Disclaimer and Source

Source

This content has been newly structured and written based on financial facts and numerical data from officially disclosed securities analysis reports.

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This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific financial instruments. All investment decisions and financial liabilities rest entirely with the individual investor.

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