[Click eStock] "Hyundai Construction Recognized for Nuclear Power Plant Construction Technology"... Target Price Up

[Asia Economy Reporter Ji Yeon-jin] Cape Investment & Securities announced on the 27th that it has raised the target stock price of Hyundai Engineering & Construction to 74,000 KRW, stating that the company has been recognized for its technological capabilities in nuclear power plants by winning the contract for the construction of the Innovative Nuclear Research Complex commissioned by the Korea Atomic Energy Research Institute.

Kim Mi-song, a researcher at Cape Investment & Securities, explained, "Not only in infrastructure and hospital construction but also in nuclear power plants, the technological capabilities have improved, increasing the possibility of additional orders. This year’s housing supply volume is a record high of 52,000 units, laying the foundation for profit growth."

The Innovative Nuclear Research Complex, recently contracted by Hyundai Engineering & Construction, is the first phase of establishing a nuclear research and development hub for the commercialization of Small Modular Reactors (SMR), with a construction scale of 233.2 billion KRW. Since the bidding process selected the lowest bidder solely based on technical competition, there is an analysis that additional orders are possible if development expands in the future.

Global countries have embarked on green hydrogen development to achieve carbon neutrality goals. Nuclear power generation is more flexible in output control compared to renewable energy, making it efficient for green hydrogen production. For this reason, advanced countries excluding Germany and Austria include nuclear energy as an eco-friendly energy source. The United States plans to invest 3.2 billion USD in Small Modular Reactors over the next seven years.

In the case of Hyundai Engineering & Construction, there is a prospect of winning orders in new nuclear power promotion countries such as the United Kingdom and Saudi Arabia. Additionally, the company is also pursuing the contract for the El-Dabaa Nuclear Power Plant in Egypt (1.5 billion USD) in the third quarter of this year.

This content was produced with the assistance of AI translation services.