[Market Focus] KEPCO E&C Falls Over 4% on Limited Nuclear Policy Benefits

Korea Hydro & Nuclear Power Engineering (KEPCO E&C) shares declined on June 27. Investor sentiment appears to have worsened following analysis suggesting that the company will see only limited benefits from pro-nuclear policies in the United States.

As of 2:39 p.m. on the same day, KEPCO E&C's stock price on the Korea Exchange was down 4.79% from the previous trading day, trading at 105,400 won. After opening at 109,500 won, the stock has continued to fall throughout the session.

On this day, NH Investment & Securities maintained its investment rating for KEPCO E&C and set a target price of 125,000 won, stating, "There is a valuation burden, as it is difficult to expect direct benefits from the U.S. nuclear power market." Researcher Lee Minjae explained, "Although the company is developing an innovative SMR (Small Modular Reactor) with Korea Hydro & Nuclear Power with a target launch year of 2028, its competitiveness is lacking compared to the APR 1400."

He further added, "In the large-scale nuclear power sector, the company must compete against Westinghouse, and in the SMR sector, it faces competition from NuScale Power, X-energy, and TerraPower. Doosan Enerbility counts all of these companies as its clients. In contrast, KEPCO E&C can only participate in large-scale nuclear projects in Korea, which puts it at a clear disadvantage compared to Doosan Enerbility."