[Click e-Stock] Hyundai Engineering & Construction Rides the Nuclear Power Boom

Collaboration with U.S. Holtec and Westinghouse in Progress
Expected to Emerge as Korea's Leading Nuclear Power Company

There is analysis suggesting that Hyundai Engineering & Construction could move beyond being a simple construction company to become a leading nuclear power company by capturing the growing demand for nuclear power generation.

On May 8, KB Securities raised Hyundai Engineering & Construction's target share price by 7.4% to 58,000 won, citing this background. The previous day's closing price was 43,000 won. The 'Buy' investment rating was also maintained.

Hyundai Engineering & Construction is evaluated as having completely diversified its order portfolio and markets through long-term partnerships with global companies, moving beyond the traditional state-led order acquisition model, based on its successful completion of domestic nuclear power plants and the Barakah nuclear power plant in the United Arab Emirates (UAE).

In the second half of this year, achievements in the SMR (Small Modular Reactor) sector are expected to be particularly notable. This is because Hyundai Engineering & Construction and Holtec are increasingly likely to emerge as 'game changers' in the global SMR market. Holtec applied for the U.S. Department of Energy (DOE)'s '3.5th Generation Light Water Reactor-based SMR Program,' which closed at the end of last month. Unlike previous design-focused programs, this program is centered on deployment, and the mere act of applying is seen as proof that preparations for SMR construction are already at an advanced stage. If Holtec is confirmed as a final support recipient in the second half of the year, the pace is expected to accelerate further.

Holtec plans to expand its SMR business across the United States, starting with Palisades in Michigan at the end of this year, and to overseas markets such as Oyster Creek in New Jersey. Hyundai Engineering & Construction is expected to participate as a strategic partner throughout all these processes.

From next year, achievements in the large-scale nuclear power plant sector are expected to become evident. Hyundai Engineering & Construction and U.S. nuclear technology company Westinghouse signed a strategic agreement in May 2022 for joint participation in the global AP1000 reactor business. The two companies are currently pursuing a 20 trillion won project in Bulgaria and plan to expand into markets such as Slovenia, Sweden, and Finland.

Jang Moonjun, a researcher at KB Securities, explained, "Having started to ride the wave of a powerful zeitgeist, Hyundai Engineering & Construction will move beyond being the top pick in the construction sector to become the company representing Korea's nuclear power industry."