[Click eStock] "Woojin, Ready Defender of K Nuclear Renaissance and SMR"

Shinhan Investment Corp. forecasted on the 14th that Woojin will continue to attract attention thanks to the export of domestic nuclear power plant equipment and the growth of the Small Modular Reactor (SMR) market. No investment opinion or target price was separately provided.

Choi Seunghwan, a researcher at Shinhan Investment Corp., stated in the report on the same day, "This year, nuclear power stocks fluctuated due to positive factors related to overseas nuclear power plant orders and SMR commercialization," and predicted, "2025 will also be a year with many positive factors, continuing to attract attention."

Woojin's nuclear power plant instrumentation devices are a core source of profit with an operating profit margin of 30%. Over the past five years, the operating profit and loss turned around from -1.1 billion KRW to 14.3 billion KRW due to a 15.9 percentage point increase in nuclear power utilization rate. It is explained that over the next five years, exports of Korean nuclear power plants will drive performance.

Researcher Choi said, "Instrumentation devices have been co-developed since the reactor development stage, making it impossible for new competitors to enter," and added, "Woojin participates in the Korean Small Modular Reactor i-SMR project and develops core instrumentation devices, with no competitors, and SMRs will drive performance in 10 years."

The current stock price is at the lower end of the historical band with an expected PER of 10 times in 2025, which is one-fourth the level of overseas nuclear power companies (40 times). Shinhan Securities evaluated that Woojin's valuation is excessively discounted considering Korea's growing position in the global nuclear power plant order market and its exclusive benefits within Korean nuclear power plants.