[Click e-Stock] "Nuclear Renaissance... New Opportunities for Korean Companies"

On May 14, KB Securities projected that the ongoing nuclear power plant renaissance is likely to open new opportunities for Korean companies as well.

Jang Moonjun, a researcher at KB Securities, stated, "In the past, the nuclear power plant theme was driven by a state-led export model called 'Team Korea'," adding, "This expectation led to a rise in the stock prices of value chain stocks centered on public enterprises such as Korea Engineering & Construction and KEPCO KPS."

According to KB Securities, between 2008 and 2010, the nuclear power plant theme rapidly spread in the stock market, fueled by expectations for securing the UAE Barakah project. Jang commented, "Since this was during the global financial crisis, the strong performance of nuclear power stocks was quite significant," and evaluated, "Excluding BHI, which was particularly volatile as a small-cap stock, it is reasonable to say that Korea Engineering & Construction and KEPCO KPS were the leading stocks of the nuclear power cycle at that time."

KB Securities emphasized that the core of the current nuclear power cycle is 'Beyond Team Korea.' Jang explained, "This is a shift beyond the single frame of Team Korea, with Korean companies now emerging as one of the pillars restructuring the entire industry together with global technology firms."

He further analyzed, "The core of this nuclear power cycle is not simply an expansion of orders centered on Team Korea. The current trend is predicated on a structural change in the nuclear power industry itself, with a new element at its center: strategic partnerships between Korean private nuclear power companies and global technology firms."

He added, "It is no longer limited to the 'national package model' in which KEPCO and Korea Hydro & Nuclear Power take the lead in structuring the industry. Now, private entities such as Hyundai Engineering & Construction and Doosan Enerbility are taking center stage through direct collaboration with global technology firms."

Accordingly, KB Securities stresses the need to adopt new strategies for investing in nuclear power-related stocks. Jang stated, "While the beneficiaries of the previous cycle were concentrated in public enterprise-based stocks such as Korea Engineering & Construction and KPS, this cycle is likely to focus on private companies such as Hyundai Engineering & Construction, Doosan Enerbility, and BHI."