[Edaily Reporter Hyera Lee ] On the 14th, Hana Securities upgraded its investment rating for KoreaElectricPower(015760)from “Neutral” to “Buy,” citing expectations of medium- to long-term benefits resulting from changes in power policy. The target price was maintained at 45,000 won.

Yoo Jae-seon, an analyst at Hana Securities, stated, “While the won-dollar exchange rate remains a burden, the downward trend in earnings estimates is coming to an end as raw material prices stabilize,” adding, “Cost pressures are also expected to ease after peaking in the third quarter.”
Hana Securities projected that second-quarter consolidated revenue would reach 22 trillion won and operating profit 1.8 trillion won—representing a 0.3% year-over-year increase and a 14.4% year-over-year decrease, respectively—in line with market expectations.
Analyst Yoo predicted that while revenue from electricity sales would decline due to slowing industrial power demand and weak selling prices, increased revenue from overseas operations would partially offset this. He analyzed, “Although fuel costs will rise due to the expiration of the special consumption tax discount on bituminous coal and higher import prices, a decrease in power purchase costs resulting from the decline in the System Marginal Price (SMP) will alleviate the cost burden.”
Researcher Yoo highlighted the increase in electricity demand driven by the proliferation of artificial intelligence (AI) data centers and changes in power generation policies as key factors for the medium to long term. He estimated, “Investments in AI data centers alone will cause electricity demand to rise by more than 20% compared to 2025 levels.”
Researcher Yoo stated, “As the government has mentioned expanding baseload power sources, including nuclear power, KoreaElectricPower’s earnings resilience is likely to improve due to changes in the power generation mix,” adding, “A recovery in valuation over the medium to long term is also possible in line with the 12th Basic Plan for Power Supply and Demand.”