Published 30 Apr.2024 08:40(KST)
On the 30th, KB Securities evaluated that KEPCO KPS, which focuses on power plant maintenance business, has a high potential for stock price increase despite poor performance in the first quarter of this year. The analysis pointed out that the maintenance workload for nuclear power plants is continuously increasing, and the government's value-up program has also enhanced the dividend attractiveness.
Jung Hye-jung, a researcher at KB Securities, stated in a report on the same day, "Following the commercial operation start of Shinhanul Unit 1 in 2022, Shinhanul Unit 2 began operation in April this year," adding, "Saewool Units 3 and 4 are expected to sequentially start operation in October this year and next year, respectively, which will continuously increase KEPCO KPS's domestic nuclear power plant maintenance workload."
Researcher Jung explained, "If orders for the nuclear power plant projects in Poland and the Czech Republic, which are currently in bidding and detailed negotiations, are secured, additional overseas expansion will be possible following the United Arab Emirates (UAE)," and added, "The 11th Basic Plan for Electricity Supply and Demand to be announced this year is also expected to include new nuclear power plant construction."
He forecasted, "The government added shareholder return policy as an evaluation item for listed public enterprises earlier this year," and predicted, "Under stable performance trends, KEPCO KPS's dividend attractiveness could increase further."
Meanwhile, KEPCO KPS recorded results below market consensus due to a decrease in sales in the domestic nuclear power plant maintenance sector despite increased sales in thermal power maintenance and overseas sectors. Sales amounted to 343.4 billion KRW, down 2.2% compared to the same period last year, and operating profit was 35.1 billion KRW, down 23.6% over the same period.
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