[Edaily Reporter Lee Hye-ra] On the 19th, Daishin Securities maintained its “Buy” rating on #KEPCO Engineering & Construction, noting that while the company’s medium- to long-term growth prospects remain valid, it lowered its target price by 10% to 195,000 won to reflect uncertainty regarding the initial investment targets for U.S. nuclear power projects.

Heo Min-ho, an analyst at Daishin Securities, stated in a report released that day, “While we maintain a positive outlook on medium- to long-term growth potential, we have adjusted our target valuation to reflect uncertainties regarding short-term momentum.”
Researcher Heo assessed that growth momentum—including market expansion, new orders, and improved earnings—needs to be consistently confirmed. He analyzed, “From last year through the first quarter of this year, expectations of global nuclear power market expansion, the win of the Dukovany nuclear power plant project in the Czech Republic, and improved earnings drove the stock price higher.”
However, he emphasized that it remains to be confirmed whether Korea Electric Power Technology’s first investment target in U.S. nuclear power plant construction projects will be a large-scale reactor or an SMR. He elaborated, “Although the foundation for equity investment, EPC, and equipment orders has been laid, further confirmation is needed.”
Researcher Heo noted, “For large-scale nuclear power plants, project progress may be delayed beyond expectations due to negotiations surrounding the division of EPC roles and cost burdens resulting from construction delays,” but added, “Since the company has a track record of commercial operation in the U.S., there is a high likelihood that follow-up projects will expand rapidly once the first contract is signed.”
Regarding SMRs, he analyzed, “Although there are no commercial operation cases yet, since the developers’ bargaining power is relatively weak, project negotiations are likely to proceed more quickly.”
Researcher Heo noted that if the South Korean government’s first U.S. nuclear power investment project is decided to be an SMR, the scope of KEPCO Engineering & Construction’s participation could vary depending on the specific project. He predicted, “Considering the growing demand for clean baseload power in the eastern and central regions of the U.S., it is highly likely that large-scale nuclear power projects will also be fully launched in the near future, and the momentum for participation in U.S. large-scale nuclear power projects will continue.”