Companies related to nuclear power generation are drawing attention in the domestic stock market. Shares of Woojin Entec, which possesses core technologies across the entire life cycle of nuclear power generation, are also on the rise.
As of 10:56 a.m. on June 12, Woojin Entec was trading at 23,200 won, up 12.08% from the previous day.
Established in 2013, Woojin Entec specializes in maintenance of instrumentation and control systems for nuclear and thermal power plants. The company focuses on providing comprehensive solutions including equipment diagnostics and performance improvement services, as well as the manufacturing and supply of domestic systems. Starting with a contract for maintenance of instrumentation and control systems at Kori Unit 2 in 2014, Woojin Entec entered the field of routine maintenance for instrumentation and control systems, which serve as the central nervous system of power plants. The company has established expertise and reliability in the maintenance sector, based on know-how accumulated through a variety of projects such as scheduled preventive maintenance, special maintenance, and equipment integrity diagnostics, in addition to routine maintenance.
Yuanta Securities described Woojin Entec as a company possessing core technologies for the entire life cycle of nuclear power generation. The firm analyzed that additional benefits are expected due to pro-nuclear power policies both domestically and internationally.
Baek Jongmin, a researcher at Yuanta Securities, explained, "The size of the power plant maintenance market is proportional to the number of new power plants (Q), and the amount of maintenance business (P) increases slightly each year due to inflation. Most of the costs (C), such as labor costs, are reimbursed, and business contracts are awarded through competitive bidding."
He added, "There are additional points for factors such as price, consortium composition, and experience in commissioning work. Capabilities such as core maintenance technology and flexible workforce management are also required. Woojin Entec has demonstrated its competitiveness in winning orders by recording a compound annual growth rate of 13.4% in sales from its establishment in 2013 through 2024."
According to Yuanta Securities, as Woojin Entec is expected to conduct commissioning work for Saeul Units 3 and 4, which are scheduled to begin commercial operation between 2025 and 2026, it is likely that this will lead to routine maintenance orders. Additionally, the resumption of construction for Shin Hanul Units 3 and 4, as well as the addition of two new nuclear power plants between 2037 and 2038, are expected to provide further benefits due to pro-nuclear policies at home and abroad.
Researcher Baek stated, "A total of 12 nuclear power plants will reach the end of their design life by 2029. The first to expire, Kori Unit 1 and Wolsong Unit 1, are undergoing permanent shutdown and decommissioning procedures, while the remaining 10 are scheduled for life extension. The company has a flexible business structure that can respond to both decommissioning of aging plants and life extension projects."
Jung Hyejeong, a researcher at KB Securities, said, "As nuclear power generation facilities increase in Korea, the volume of maintenance work is also rising in the long term.As of the end of April, the operating nuclear power generation capacity in Korea stood at 26.05GW, and in 13 years, it is expected to expand to 34.5GW. She continued, "Approval for decommissioning of the permanently shut down Kori Unit 1 and Wolsong Unit 1 could be granted as early as the second half of this year through 2026. Woojin Entec has been selected as an implementing company for national projects related to nuclear power plant decommissioning technology development by government-affiliated agencies since 2003, and is developing core technologies for radiation measurement and related decommissioning processes," she emphasized.
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