[Special Stock] KEPCO KPS Surges Over 8% on Possibility of Czech Nuclear Power Plant Contract

Korea Plant Service & Engineering (KEPCO KPS) showed strong performance in early trading on April 25. This is due to the growing likelihood that the Czech government will soon finalize a contract for nuclear power plant construction.

As of 10:00 a.m. on this day, KEPCO KPS was trading at 11,730 won, up 940 won (8.71%) from the previous trading day.

On April 24 (local time), the Czech competition authority gave its final approval, stating there were no issues with Korea Hydro & Nuclear Power (KHNP) being selected as the preferred bidder for the nuclear power plant construction project. As a result, investor sentiment is now focusing on KEPCO KPS, a nuclear-related stock.

Many nuclear power-related stocks are also rising. LS Electric (up 6.63%), Samyoung M-Tek (up 6.48%), Hyosung Heavy Industries (up 5.70%), Doosan Enerbility (up 3.16%), and Woojin Entech (up 3.06%) are among those gaining.

Following the decision by the Czech competition authority, the likelihood has increased that the final contract for nuclear power plant construction between KHNP and the Czech government will be signed soon. The two sides originally planned to complete the contract by March this year, but the process was delayed due to the competition authority's review and a temporary contract hold.

The Czech government is negotiating with KHNP to build two new reactors at the existing Dukovany nuclear power plant site. It is also reported that if the plan to add two more reactors at the Temelin nuclear power plant is confirmed, an option will be provided to grant KHNP the preferential negotiation rights.

The Czech Republic has proposed a budget of 400 billion Czech koruna (about 26.2 trillion won) for the two Dukovany reactors. The consortium led by KHNP includes KEPCO Group companies such as KEPCO E&C, KEPCO KPS, KEPCO Nuclear Fuel, as well as private companies like Doosan Enerbility and Daewoo Engineering & Construction.