Woori Technology is showing strong performance. The surge in sales in the nuclear power plant business segment appears to be influencing the stock price, as the company achieved its best-ever first-quarter results.
As of 10:53 AM on the 16th, Woori Technology is trading at 2,045 KRW, up 7.46% from the previous day.
Woori Technology announced that its consolidated sales for the first quarter increased by 49.2% year-on-year to 15.5 billion KRW. During the same period, operating loss and net loss were recorded at 400 million KRW and 200 million KRW, respectively.
Woori Technology saw increased sales and significantly improved profits even in the traditionally slow first quarter, thanks to the full-scale delivery of the nuclear power plant control and instrumentation system (MMIS) applied to existing operating nuclear power plants. Woori Technology is the only domestic supplier of nuclear power plant MMIS and holds MMIS supply references for Shinhanul Units 1 to 4 and Saeul Units 3 and 4.
The outlook for future performance is also positive. Last year, Woori Technology was selected as the exclusive MMIS supplier for Shinhanul Units 3 and 4, achieving new orders exceeding 70 billion KRW. Large-scale sales are recognized at once upon delivery of the main products, and additional sales such as spare parts continue to occur.
With the rapid increase in power infrastructure demand for artificial intelligence (AI) data centers, benefits from expanded domestic and international nuclear power investments are also expected. The 11th Basic Plan for Electricity Supply and Demand, scheduled to be announced this month, is expected to include the construction of two or more new nuclear power plants and SMRs. The Czech nuclear power plant, which is preparing to select a preferred bidder in the second half of the year, has been expanded to a total of four units. MMIS is applied not only to new nuclear power plant construction but also to exported nuclear power plants and SMRs. According to the company, additional orders exceeding 50 billion KRW per large nuclear power plant unit are possible.
Besides the nuclear power plant business, the defense and SOC (railroad) business segments are also growing. Woori Technology supplies key tank components through its subsidiaries, and sales to existing customers are increasing. Since last year, the SOC business performance has greatly improved due to the full-scale delivery of PSDs (horizontal platform screen doors) for the S?o Paulo Metro in Brazil, worth a total of 50 billion KRW.
A Woori Technology official explained, "Although the nuclear power plant business traditionally sees sales concentrated in the fourth quarter due to seasonal factors, we have succeeded in maximizing performance during the off-season thanks to the recent surge in orders based on our exclusive domestic nuclear power control system." He added, "Not only will sales expand through previously secured orders, but the start of large-scale MMIS delivery for Shinhanul Units 3 and 4 will lead to rapid growth in nuclear power plant business performance."
Furthermore, he said, "Since nuclear power plants and SMRs are the most suitable power sources for AI data centers, nuclear power-related investments worldwide are expected to increase significantly. Along with the core nuclear power business, the defense and SOC businesses are steadily growing, so we expect to achieve record-breaking performance again this year following last year."
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