[Click eStock] "Hyundai Construction, Korea's Leading Nuclear Power Stock... Target Price Up"

Target Price Raised by 18.7% Compared to Previous Estimate

On the 4th, KB Securities upgraded Hyundai Engineering & Construction from the top preferred stock in the construction sector to the leading Korean nuclear power stock, raising the target price from 45,500 KRW to 54,000 KRW. The investment rating was maintained as 'Buy.'

Jang Moon-jun, a researcher at KB Securities, stated, "The target price was raised by 18.7% compared to the previous estimate, reflecting changes in earnings forecasts. The successful completion experience of the Barakah Nuclear Power Plant in the United Arab Emirates (UAE) has drawn attention to Hyundai Engineering & Construction from power demanders and original technology holders worldwide. We recommend Hyundai Engineering & Construction as a company representing the Korean nuclear power industry, beyond just the top preferred stock in the construction sector."

The biggest feature of this nuclear cycle is that power demanders want to introduce nuclear power within fixed timelines and budgets, and due to geopolitical factors, value chains centered on Russia and China are excluded. Researcher Jang analyzed, "In this context, discussions on the introduction of not only large nuclear power plants but also Small Modular Reactors (SMRs) have accelerated. Hyundai Engineering & Construction is a rare case that met both the timeline and budget conditions through the completion of the Barakah Nuclear Power Plant, emerging as the most trusted partner for global nuclear power clients and original technology holders."

KB Securities views Hyundai Engineering & Construction's future opportunities in the nuclear power business as dependent on whether it belongs to the supply chain of nuclear players with high expansion potential and what role it performs within that chain. Hyundai Engineering & Construction has partnered with Westinghouse in the U.S. for large nuclear power plants and Holtec in the U.S. for SMRs. Researcher Jang said, "Westinghouse plans to expand the market starting with the Bulgarian nuclear power plant alongside Hyundai Engineering & Construction to Slovenia, Finland, and others. Holtec plans to expand from Palisades in Michigan to Oyster Creek in New Jersey, then across the U.S. and globally for SMRs, utilizing Hyundai Engineering & Construction as a partner. These partnerships are based on long-term expansion through repeated orders rather than one-off contracts, which will solidify Hyundai Engineering & Construction's position in the future nuclear power market."