[Featured Stock] Orbitech Expected to be Included in Nuclear Power K-Taxonomy... Waste Disposal Facility Essential

[Asia Economy Reporter Hyungsoo Park] Orbitech is showing strong performance. The European Union (EU) classifying natural gas and nuclear power generation as eco-friendly energy sources appears to be influencing the stock price with expectations of increased business opportunities.

As of 11:12 AM on the 7th, Orbitech is trading at 6,430 KRW, up 14.82% from the previous day.

The European Parliament held a plenary session on the 6th and approved the inclusion of nuclear and natural gas energy-related activities in the EU taxonomy. If the EU Council does not oppose including nuclear power and natural gas in the taxonomy, the delegated act including these energy sources will take effect on January 1 of next year.

Yang Ilwoo, a researcher at Samsung Securities, said, "The EU Council approval process, which involves ministers from the 27 EU countries, is still pending," but added, "Once the Council's approval is confirmed, nuclear power plant construction will become active in Eastern European countries including the Czech Republic and Poland, which have plans for new nuclear plants."

He continued, "Export opportunities related to nuclear power for domestic companies will expand," and added, "A noteworthy technology depending on whether K-Taxonomy includes nuclear power economic activities is technology related to radioactive waste disposal."

Furthermore, he emphasized, "Looking at the EU taxonomy, owning disposal facilities for low- and intermediate-level radioactive waste is an essential requirement for nuclear economic activities," and "It is expected that K-Taxonomy will apply similar standards."

Lee Choongheon, a researcher at Valuefinder, recently released an analysis report on Orbitech. He introduced Orbitech as a specialized company in nuclear radiation management, radioactive waste treatment, and precision aircraft parts.

The researcher said, "Orbitech holds the second-largest market share in nuclear power plant management service market, maintaining a stable business structure," and predicted, "If additional nuclear power plant construction proceeds, pre-operation inspection services, which did not exist before, are expected to contribute to performance."

He also forecasted that Orbitech would benefit from a first-mover advantage as the nuclear power plant decommissioning market blooms. Through national projects, Orbitech holds about 30 decommissioning technologies and more than 20 patents, securing most of the decommissioning process technologies except for the cutting process. Orbitech plans to complete preparations related to nuclear power plant decommissioning by the second half of this year by establishing a 250-pyeong (approx. 826 sqm) radiation analysis center in Ulsan.

Last month, Orbitech signed a contract with the Korea Atomic Energy Research Institute for the "Detailed Design Service for the Demolition of Combustible Waste Treatment Facility." Orbitech will derive detailed designs necessary for the demolition of the combustible waste treatment facility and provide specialized technical services to the Korea Atomic Energy Research Institute aiming for regulatory approval of the demolition plan. The main tasks include ▲detailed design of facility demolition ▲establishment of waste management procedures (including radioactive waste) during demolition ▲development of radiation hazard prevention plans during demolition.