Doosan Fuel Cell plunges after $270 mn contract termination

Doosan Fuel Cell plunges after $270 mn contract termination

South Korea’s Doosan Fuel Cell saw its shares plunge on Tuesday morning after the company announced the cancellation of a major supply deal worth nearly 400 billion won ($272 million).

The stock was trading 2.44 percent lower at 13,570 won as of 10:52 a.m. on Tuesday. It opened 4.39 percent lower and, at one point, dropped by 5.46 percent to 13,150 won, its lowest price in a year.

The decline came after Doosan Fuel Cell disclosed that it agreed to terminate its fuel cell system supply contract with Korea Hydro & Nuclear Power Engineering, Kumho Technology, and LS Electric due to prolonged delays in receiving the notice to proceed.

Meanwhile, Hanwha Group affiliates saw their shares surge on Tuesday after Chairman Kim Seung-youn transferred part of his stake in the holding company Hanwha Corp. to his three sons.

Hanwha shares were trading at 44,100 won as of 10:56 a.m., up 7.69 percent from the previous session. Other group stocks also gained, with Hanwha Aerospace climbing 4.94 percent higher to 658,000 won, Hanwha Ocean shares jumping 3.28 percent to 69,300 won, and Hanwha Solutions shares up 3.8 percent to 19,110 won.

Hanwha announced on Monday that Kim completed the succession process by transferring 11.32 percent of his 22.65 percent stake to his sons. However, the company denied market speculation of a merger between Hanwha and Hanwha Energy, saying there is no longer a reason for a merger as the succession arrangements are now complete.

SK Securities raised its price target for Hanwha from 44,000 won to 54,000 won following the news, citing the resolution of uncertainties surrounding the succession.

For its part, dental implant maker Dentium saw its shares surge more than 9 percent after activist fund Align Partners disclosed it acquired a 7.17 percent stake.

The stock was trading at 77,800 won as of 10:58 a.m., up 9.42 percent from the previous day.

Align Partners reported that the investment was for “general investment purposes,” suggesting it may engage in active shareholder activities short of seeking control, such as exercising voting rights and claiming rights to new shares.

In other market news, chip stocks also gained ground, with Samsung Electronics Co. shares soaring 2.16 percent to 59,200 won as of 11:05 a.m. and SK hynix Inc. jumping 2.15 percent to 194,800 won.

NAND flash prices continued to rise for a third consecutive month in March 2025, market research firm DRAMeXchange said on Tuesday. The average fixed price of 128Gb 16Gx8 MLC NAND for memory cards and USB drives rose 9.61 percent from the previous month to $2.51. After falling for four straight months through December 2024, NAND prices began rebounding in January 2025.

Fellow market research firm TrendForce noted that the price recovery was due to production cuts in high-capacity TLC and QLC NAND. It added that demand for enterprise SSDs and HDDs used in data centers is expected to recover in the second quarter of 2025 after a brief adjustment, thanks to growth in the artificial intelligence sector.

The average fixed price of general-use DRAM for PCs (DDR4 8Gb 1Gx8), on the other hand, remained unchanged from the previous month at $1.35. DRAM prices had been falling since August 2024, with steep drops of 17.07 percent in September and 20.59 percent in November before stabilizing in December.

Doosan Fuel Cell shares closed at 13,750 won, while Hanwha Group shares closed at 43,200 won, Hanwha Aerospace shares closed at 673,000 won, Hanwha Ocean shares closed at 56,500 won, and Hanwha Solutions shares closed at 19,910 won. Dentium shares closed at 79,000 won, while Samsung Electronics shares closed at 58,800 won, and SK hynix shares closed at 197,000 won.

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Doosan Fuel Cell plunges after $270 mn contract termination, source

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