[Click eStock] "Orbitech, New Government Nuclear Policy + Aerospace Parts Turnaround Expected"

[Asia Economy Reporter Jang Hyowon] On the 6th, SK Securities analyzed that OrbiTech would benefit across its entire business structure if the nuclear power industry grows. No investment opinion or target price was provided.

Na Seungdoo, a researcher at SK Securities, stated, “If the current level of nuclear power plants is maintained with the launch of the new government, the ISI sector (in-service nondestructive inspection) could benefit.”

He added, “If the construction of new nuclear power plants is accelerated and the operation rate of existing plants is increased, benefits will be seen in the PSI (pre-service inspection) and ISI sectors,” and “if the closure of aged nuclear power plants is pursued, the radioactive waste treatment sector will benefit.”

Only a few companies have obtained the highest safety grade, Q grade, from Korea Hydro & Nuclear Power (KHNP) for pre-service and in-service inspection services of nuclear power plants, making it a service with high entry barriers. OrbiTech holds a market share in the high teens percentage range within its clients in the radiation management and ISI sectors.

Researcher Na said, “The ‘110 National Tasks of the Yoon Seok-yeol Government (5/3)’ announced by the transition committee, which includes the abolition of the nuclear phase-out policy, strengthening the nuclear industry ecosystem, and the goal of exporting 10 nuclear power plants by 2030, is encouraging for the company,” and “a turnaround in the aircraft precision parts sector is also expected.”

OrbiTech operates nuclear power plant facilities and radioactive waste management businesses, performing cladding dose evaluation, treatment of low- and intermediate-level radioactive waste, and ISI/PSI services. Additionally, in the aircraft precision parts manufacturing division, it supplies more than 1,000 parts applied to various models such as the B747, B767, and B787 to U.S. companies including Spirit AeroSystems.

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