Woojin Entech Resolves Overhang... "Enhancing Corporate Value through Strong Maintenance Projects and Leading Nuclear Power Plant Decommissioning Technology"

Woojinentec aims to resolve the overhang (potential large-scale sell-off) issue and rebound its stock price based on a robust order backlog and growth potential in the nuclear power plant decommissioning sector.

According to the financial investment industry on the 10th, it is understood that the foreign investor who purchased shares held by the second-largest shareholder, Simpack, through a block deal (large-scale off-hours trade) has nearly completed selling those shares. Simpack sold 1.9 million shares (20.5%) to the foreign investor in two transactions in July and August.

The foreign ownership ratio, which surged by around 10% on July 24 and August 19 when the block deals occurred, has decreased to about 1%. Considering the current foreign ownership ratio, the overhang issue caused by the block deals is estimated to have been resolved.

A Woojinentec official stated, "A relatively high discount rate was applied during the block deal process, leading to profit-taking by the foreign investors who acquired those shares," adding, "Considering that the foreign ownership ratio has returned to pre-block deal levels, further selling pressure is expected to be quite limited."

Despite the weak stock price, Woojinentec's order volume is increasing based on its high technical skills and operational capabilities in its core business of instrumentation and control equipment maintenance. Including the 29.8 billion KRW maintenance service order for Hanbit Unit 2 power plant (with Woojinentec's share of 15.2 billion KRW) in July, the company recorded an order backlog of 60.6 billion KRW as of the end of August. Continuous performance growth is expected due to the expansion of new nuclear power plant operations and increased sales of related equipment products.

A Woojinentec representative said, "Separate from the major shareholders' share sales, the growth of our core business and research and development for new nuclear power-related businesses are progressing smoothly," and added, "We will strive to enhance corporate value based on the growth potential of new businesses such as nuclear power plant decommissioning."

Meanwhile, Woojinentec is expanding investments by positioning the nuclear power plant decommissioning sector as a new growth engine following its core business in power plant key instrumentation and control equipment maintenance. Along with expanding in-house R&D, the company is participating in various national research projects and was selected this year as a joint research and development institution for the field demonstration project in nuclear power decommissioning by the Korea Institute of Energy Technology Evaluation and Planning.