[Click eStock] "KEPCO Engineering & Construction, Target Price Up on Expansion of New Nuclear Power and SMR Construction"

KB Securities raised the target price of KEPCO Engineering & Construction to 87,000 KRW on the 8th. This is based on the expectation that profitability will improve as domestic new nuclear power plants and small modular reactors (SMRs) construction increase.

SMR

Jeong Hye-jeong, a researcher at KB Securities, stated, "There should be no issues with the existing plan to sign the main contract with our consortium by March next year, as the Czech Republic, which placed a large-scale order for nuclear power plants domestically, dismissed objections from Westinghouse and EDF."

Researcher Jeong also expressed optimism, saying, "In addition to the Czech Republic, there is potential for overseas nuclear power plant project orders such as Poland's nuclear power plant and the UAE Units 5 and 6."

He added, "The 11th Basic Plan for Electricity Supply and Demand, to be announced by the government at the end of the year, will include plans to construct three large nuclear power plants and four SMRs by 2038," and predicted, "This will act as a driving force for KEPCO Engineering & Construction's performance improvement."

Accordingly, he explained, "We have revised upward the medium- to long-term operating profit forecasts for KEPCO Engineering & Construction, raising the target price by 10.1% compared to the previous level."