Corporate Logo(source: kepco-enc.com)
KB Securities raised its target price for KEPCO E&C (052690) from 87,000 won to 104,000 won on July 15, citing sustained expectations for follow-up nuclear power plant orders in the Czech Republic and the United Arab Emirates (UAE). The brokerage maintained its “Buy” rating.
Analyst Jeong Hye-jung commented, “KEPCO E&C, which designs Korean-style nuclear power plants, is expected to secure new contracts related to the Czech project in the second half of this year, in addition to the Shin Hanul Units 3 and 4, which currently support its order backlog. While no additional Korean-style nuclear export projects have been confirmed beyond the two domestic units scheduled to begin operations by 2038, there remains anticipation surrounding potential follow-up projects in the Czech Republic and UAE.”
She added, “There is also a positive outlook for KEPCO E&C’s entry into the nuclear decommissioning sector, particularly in light of the decision to decommission Kori Unit 1. This may lead to involvement in comprehensive decommissioning design and site restoration of the reactor and associated facilities.”
However, the company’s second-quarter performance is expected to fall short of market consensus. KB Securities forecasts revenue and operating profit of 116.9 billion won and 5 billion won, respectively, representing year-on-year declines of 8.1% and 60.1%. The projected operating profit is 43.2% below market expectations.
Jeong further explained, “With the completion of the Saeul Units 3 and 4 and the UAE nuclear project nearing, a contraction in revenue is unavoidable. As labor costs, which are fixed in nature, remain unchanged, the operating margin is also expected to decline by 5.6 percentage points to 4.3% during the period.”
*[KOSPI] KEPCO Engineering & Construction Company(052690) is an affiliate of Korea Electric Power Corporation and carries out nuclear/hydrothermal power plant design, power generation facility O&M, plant construction projects, and new renewable energy-related projects. Market capitalization is 3.398 trillion won (as of July 14, 2025, closing price).
Corporate Logo(source: kepco-enc.com)
KB Securities raised its target price for KEPCO E&C (052690) from 87,000 won to 104,000 won on July 15, citing sustained expectations for follow-up nuclear power plant orders in the Czech Republic and the United Arab Emirates (UAE). The brokerage maintained its “Buy” rating.
Analyst Jeong Hye-jung commented, “KEPCO E&C, which designs Korean-style nuclear power plants, is expected to secure new contracts related to the Czech project in the second half of this year, in addition to the Shin Hanul Units 3 and 4, which currently support its order backlog. While no additional Korean-style nuclear export projects have been confirmed beyond the two domestic units scheduled to begin operations by 2038, there remains anticipation surrounding potential follow-up projects in the Czech Republic and UAE.”
She added, “There is also a positive outlook for KEPCO E&C’s entry into the nuclear decommissioning sector, particularly in light of the decision to decommission Kori Unit 1. This may lead to involvement in comprehensive decommissioning design and site restoration of the reactor and associated facilities.”
However, the company’s second-quarter performance is expected to fall short of market consensus. KB Securities forecasts revenue and operating profit of 116.9 billion won and 5 billion won, respectively, representing year-on-year declines of 8.1% and 60.1%. The projected operating profit is 43.2% below market expectations.
Jeong further explained, “With the completion of the Saeul Units 3 and 4 and the UAE nuclear project nearing, a contraction in revenue is unavoidable. As labor costs, which are fixed in nature, remain unchanged, the operating margin is also expected to decline by 5.6 percentage points to 4.3% during the period.”
*[KOSPI] KEPCO Engineering & Construction Company(052690) is an affiliate of Korea Electric Power Corporation and carries out nuclear/hydrothermal power plant design, power generation facility O&M, plant construction projects, and new renewable energy-related projects. Market capitalization is 3.398 trillion won (as of July 14, 2025, closing price).