[E-Daily Reporter PARK MIN ] Domestic nuclear power-related stocks continued their strong performance in early trading on the 26th, following the previous day’s trend. Buying momentum is spreading across the entire sector as expectations grow that domestic companies will secure contracts following the U.S. policy to expand new nuclear power plants.
According to MP Doctor, as of 9:19 a.m. today, DOOSAN ENERBILITY is trading at 83,200 won, up 3.10% from the previous trading day, while HyundaiEngineering&Construction(000720)is trading at 126,300 won, up 4.12%. In addition, KEPCO Engineering & Construction(052690)(up 4.14%), KoreaElectricPower(015760)(up 5.96%), and BHI Co., LTD.(083650)(up 3.78%) are also showing strong gains.
Nuclear power stocks also rose sharply the previous day. Based on the previous day’s closing prices on the Korea Exchange (KRX), DOOSAN ENERBILITY closed at 80,700 won, surging 10.55%. Other stocks classified under the nuclear power theme—including KEPCO Engineering & Construction (20.27%), HyundaiEngineering&Construction (14.87%), BHI Co., LTD. (13.80%), and Korea Electric Power Industrial Development (8.48%)—also posted strong gains.
The key driver behind this rally in nuclear power stocks is the expectation that domestic companies will secure contracts as the U.S. nuclear power market expands. With the U.S. government actively pursuing the expansion of nuclear power generation, forecasts suggest that actual project awards and orders for long-lead-time equipment could materialize starting in the second half of this year, highlighting the potential for domestic nuclear power companies to benefit.
In particular, progress on HyundaiEngineering&Construction’s U.S. nuclear power projects has boosted investor sentiment. HyundaiEngineering&Construction has completed the Front-End Engineering Design (FEED) for “Project Matterdoor,” which involves the construction of four large-scale nuclear reactors near Amarillo, Texas. The company is currently reviewing the project’s feasibility, safety, and construction timeline with the goal of securing an Engineering, Procurement, and Construction (EPC) contract. The project is set to utilize four Westinghouse AP1000 reactors.
Expectations are growing that KEPCO Engineering & Construction will benefit from the expansion of the U.S. nuclear power sector, given its capabilities in nuclear power plant design. The previous day, KEPCO Engineering & Construction posted its second-highest daily gain so far this year. HyundaiEngineering&Construction and DOOSAN ENERBILITY are also cited as stocks expected to benefit from the expansion of the U.S. nuclear power market, in the areas of nuclear power plant EPC and major equipment, respectively.
The securities industry is also focusing on the medium- to long-term order momentum for nuclear power stocks. Analysts suggest that if the U.S. nuclear expansion strategy moves beyond the policy level and leads to concrete project-based orders starting in the second half of the year, the order visibility for domestic nuclear power companies could improve.
The U.S. Department of Energy’s proposal for a $17.5 billion nuclear power supply chain loan program—which enables the procurement of long-lead-time equipment prior to the Final Investment Decision (FID)—is also cited as a factor raising domestic companies’ expectations for securing orders.
Furthermore, news that the U.S. government has proposed a joint acquisition of a stake in Westinghouse Electric Company (WEC)—a nuclear power firm owned by a Canadian private equity fund—is being interpreted as positive news for domestic nuclear power companies. Although the Ministry of Trade, Industry and Energy has officially denied the proposal, industry insiders are assessing its plausibility in light of the Trump administration’s declaration of a so-called “nuclear renaissance” and its full-scale efforts to rebuild the nuclear power industry.
Hanul Nuclear Power Plant. Photo courtesy of Hanul Nuclear Power Headquarters
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