[Asia Economy Reporter Lee Myunghwan] Korea Hydro & Nuclear Power (KHNP) is reported locally to build a new nuclear power plant in Poland, and securities firms have assessed that this news is positive for nuclear power stocks.
On the 23rd, KB Securities analyzed, "The possibility of new orders expanding is positive, but the key is the scale and sustainability."
According to local foreign media reports on the 19th (local time), KHNP is expected to sign a Letter of Intent (LOI) related to the new nuclear power plant construction project in Poland. The report stated that Poland's state-owned power company PGE, local private energy company ZEPAK, and KHNP are expected to sign the new nuclear power plant construction project within the next two weeks. The media also mentioned that this nuclear power plant construction project is part of bilateral defense cooperation.
Immediately after the news broke on the 20th, KEPCO Engineering & Construction, a representative nuclear power-related stock, surged 8.35% in one day. On the same day, Doosan Enerbility, also a nuclear power-related stock, rose 5.24%, and KEPCO KPS increased by 5.11%.
KB Securities pointed out that this contract could serve as a stepping stone for new orders. This is because domestic nuclear power companies, including KHNP, are pursuing projects not only in Poland but also in the Czech Republic and Saudi Arabia. Saudi Arabia is promoting a project to build two nuclear reactors with a total capacity of 1.4 gigawatts (GW) by 2030. In May, it requested the submission of bid proposals for participation in the project from Korea, France, China, Russia, and others.
In the case of the Czech Republic, it is a project to build one nuclear reactor with a capacity of 1.2 GW in the Dukovany area. In March, bidding began targeting KHNP, Westinghouse, and EDF, and the preferred bidder is expected to be selected in 2024. The Czech Republic is also considering the construction of up to three additional new reactors, which KB Securities believes could work favorably if the Dukovany nuclear power plant order is secured.
Jung Hyejung, a researcher at KB Securities, predicted, "Based on the past order of the UAE nuclear power plant, when exporting one APR1400 reactor, KEPCO Engineering & Construction will generate new annual sales of about 31.4 billion KRW for about 10 years from order to design and completion, and KEPCO KPS will generate new annual sales of about 30.2 billion KRW for 60 years after completion."
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