[Click eStock] "Korea Electric Power, Operating Profit Expected to Exceed This Year"

On the 21st, NH Investment & Securities maintained its 'Buy' rating and target price of 30,000 KRW for Korea Electric Power Corporation (KEPCO), stating that "this year's operating profit is expected to exceed market expectations."

NH Investment & Securities estimated KEPCO's operating profit for this year to be 16.1 trillion KRW, a sharp increase of 93% compared to the previous year, significantly surpassing the existing consensus of 13.2 trillion KRW. They forecast a clear improvement in performance starting from the first quarter. Analyst Minjae Lee analyzed, "With favorable oil prices, natural gas prices, coal prices, and nuclear power plant utilization rates, the visibility of earnings is high."

However, it was pointed out that additional electricity rate hikes are essential. This is because the bond issuance limit will be reduced from six times the capital and reserves to twice by early 2028, while the debt ratio is expected to reach 305% by the end of 2027.

Regarding dividends, assuming the same payout ratio of 16% as last year, the estimated dividend per share for this year is 2,500 KRW, with a dividend yield of 11%.