[Stock in Focus] "K-Nuclear Expansion Benefits" Susean Industry Soars

As of 9:30 a.m. on May 23, Susean Industry, a company specializing in power plant maintenance solutions, was trading at 24,400 won on the Korea Exchange, up 10.91% from the previous day's closing price. This surge appears to be driven by increased attention to nuclear power-related stocks such as Doosan Enerbility, as well as growing expectations for improved earnings for Susean Industry.

Susean Industry specializes in maintenance for nuclear, thermal, and renewable energy power plants. Through its wholly owned subsidiary Susean ENS, the company also develops and sells power plant-related systems.

The contract to export a nuclear power plant to the Czech Republic, which has been the most closely watched issue in the domestic nuclear industry, has been put on hold for now. However, Dukovany II Nuclear Power Plant, the ordering party, has filed an appeal with the Supreme Administrative Court of the Czech Republic, raising expectations that the final contract could be signed as early as the fourth quarter. According to Cho Daehyung, an analyst at DS Investment & Securities, "The power plant control system (Programmable Logic Controller, PLC) supplied by Susean ENS is an essential component of the Korean-designed APR1400 reactor, and Susean ENS is the sole supplier of this part." He added, "If the Czech nuclear power plant export contract is finalized, it is only natural that Susean ENS will win the order." As a result, there is a high possibility that Susean ENS's PLC will also be adopted for the Korean-designed SMR currently under development, which aims to be standardized by 2028.

DS Investment & Securities projects that Susean Industry's consolidated revenue will reach 334.3 billion won this year, up 5.5% from the same period last year, while operating profit is expected to surge by 22.3% to 53.2 billion won. Although the planned preventive maintenance bid for the Egbin power plant in Nigeria was somewhat delayed in the first quarter, it is expected to resume as early as the third quarter.

Additionally, there are expectations for the acquisition of a power plant in the second half of this year. The bidding process for a 200MW power plant in the Philippines, which failed last year, is also expected to resume as early as the third quarter. If Susean Industry ultimately acquires the plant, its operating revenue will be immediately reflected in its results, leading to an upward revision of next year's earnings outlook.