Corporate Logo(source: home.kepco.co.kr)
Mirae Asset Securities has raised its target price for Korea Electric Power Corp. (015760) from 32,000 won to 36,000 won, citing the continued benefits of lower oil prices on earnings. However, considering the recent surge in the company’s stock price, the firm downgraded its investment rating from “Buy” to “Neutral.”
According to the brokerage, Korea Electric Power’s operating profit for the second quarter is projected to reach 2.8031 trillion won, up 124.2% from the same period last year and surpassing the market consensus of 2.3109 trillion won.
Analyst Ryu Je-hyun stated in a report released on July 3, “In addition to the impact of higher industrial electricity rates, lower oil prices are expected to reduce fuel costs, contributing to improved earnings.”
He added, “With oil prices and exchange rates continuing their downward trend, the reduction in fuel costs is likely to persist for now, supporting the ongoing improvement in performance.”
However, Ryu also cautioned that momentum for further earnings improvement may slow in the fourth quarter, as the likelihood of additional electricity rate hikes appears low.
“With the nuclear power plant utilization rate expected to stabilize at a lower level, and without further declines in oil prices or exchange rates, it will be difficult to maintain profit momentum,” he noted.
The investment rating downgrade was attributed to the stock’s limited upside potential following its recent sharp gains.
“While Korea Electric Power has recently gained attention as a nuclear-related stock, expectations may be premature until the profitability of overseas nuclear projects is clearly demonstrated,” Ryu said. “In the past, even during periods of overseas nuclear orders, the company’s earnings momentum was primarily driven by input costs, such as oil prices, and by electricity tariffs.”
*[KOSPI] Korea Electric Power Corporation(KEPCO)(015760) engages in the development, generation, transmission, substation, distribution, and related sales, research, and technology development of electric power resources, and its largest shareholder is the Korea Development Bank. Market capitalization is 23.08 trillion won (as of July 02, 2025, closing price).
Corporate Logo(source: home.kepco.co.kr)
Mirae Asset Securities has raised its target price for Korea Electric Power Corp. (015760) from 32,000 won to 36,000 won, citing the continued benefits of lower oil prices on earnings. However, considering the recent surge in the company’s stock price, the firm downgraded its investment rating from “Buy” to “Neutral.”
According to the brokerage, Korea Electric Power’s operating profit for the second quarter is projected to reach 2.8031 trillion won, up 124.2% from the same period last year and surpassing the market consensus of 2.3109 trillion won.
Analyst Ryu Je-hyun stated in a report released on July 3, “In addition to the impact of higher industrial electricity rates, lower oil prices are expected to reduce fuel costs, contributing to improved earnings.”
He added, “With oil prices and exchange rates continuing their downward trend, the reduction in fuel costs is likely to persist for now, supporting the ongoing improvement in performance.”
However, Ryu also cautioned that momentum for further earnings improvement may slow in the fourth quarter, as the likelihood of additional electricity rate hikes appears low.
“With the nuclear power plant utilization rate expected to stabilize at a lower level, and without further declines in oil prices or exchange rates, it will be difficult to maintain profit momentum,” he noted.
The investment rating downgrade was attributed to the stock’s limited upside potential following its recent sharp gains.
“While Korea Electric Power has recently gained attention as a nuclear-related stock, expectations may be premature until the profitability of overseas nuclear projects is clearly demonstrated,” Ryu said. “In the past, even during periods of overseas nuclear orders, the company’s earnings momentum was primarily driven by input costs, such as oil prices, and by electricity tariffs.”
*[KOSPI] Korea Electric Power Corporation(KEPCO)(015760) engages in the development, generation, transmission, substation, distribution, and related sales, research, and technology development of electric power resources, and its largest shareholder is the Korea Development Bank. Market capitalization is 23.08 trillion won (as of July 02, 2025, closing price).