[Click e-Stock] "Hyundai Engineering & Construction, Top Pick to Benefit from Nuclear Power Revival"

Successful Completion of Nuclear Power Plants
Multiple Collaborations with Global Companies

Hyundai Engineering & Construction is expected to be the biggest beneficiary of the revival of nuclear power generation.

On the 27th, KB Securities raised its target price for Hyundai Engineering & Construction by 19.4% to 74,000 won, citing this background. The previous day's closing price was 58,200 won. The 'Buy' investment rating was also maintained. In addition to the stock price increase driven by renewed interest in construction stocks, expectations for the revival of nuclear power were also reflected.

KB Securities assessed that the revival of nuclear power has been officially declared. Germany withdrew its opposition to recognizing nuclear power within the European Union (EU) on the 19th, and Sweden approved a budget for new nuclear power plants on the 21st. On the 23rd, U.S. President Donald Trump also signed an executive order to revitalize the nuclear industry. It is now evaluated that doubts about the return of nuclear power demand have been resolved.

Due to the long hiatus, the nuclear power industry supply chain has been significantly damaged, so discussions are expected to continue on 'who will build, and how.' Since 1978, only two new reactors have begun construction and entered commercial operation in the United States. The world is expected to consider realistic ways to secure production and construction capabilities. Kang Minchang, a researcher at KB Securities, explained, "Korea has extensive experience in constructing and operating multiple nuclear power plants and has maintained its supply chain," adding, "Korea is also an attractive partner for geopolitical reasons, making it an inevitable focus of attention."

Hyundai Engineering & Construction has already successfully completed domestic nuclear power plants as well as the Barakah nuclear power plant in the United Arab Emirates (UAE). The company is diversifying its order portfolio and markets through long-term collaboration with global companies, moving beyond the past state-led order acquisition model. In the second half of this year, it is expected to achieve results in small modular reactors (SMR) in partnership with Holtec in the United States, and from the end of this year or early next year, in large-scale nuclear power projects with Westinghouse in the United States. Researcher Kang emphasized, "Nuclear power has become the new spirit of the times," and added, "Hyundai Engineering & Construction will become the company that sets the 'standard' for global nuclear power plant construction."