KB Securities evaluated Hyundai E&C as a corporation that will become the standard for constructing nuclear power plants worldwide, forecasting that its stock price will rise further on the 21st. KB Securities maintained a 'buy' investment opinion on Hyundai E&C and raised its target price from 58,000 won to 62,000 won.
Hyundai E&C's stock price has risen 83.7% this year. As the stock price has sharply increased, investment may inevitably become hesitant. However, Jang Moon-jun, a researcher at KB Securities, noted that 'the stock price revaluation has not even started' and stated that despite this year's stock price increase, Hyundai E&C is only at 0.6 times the 12-month forward price-to-book ratio (PBR · market capitalization ÷ net worth).
Jang noted that in pushing for new nuclear power stations, 'performance capability' is increasingly emerging as a key evaluation criterion, and explained that Korea, including Hyundai E&C, has delivered significant results in this area.
Jang stated, 'After repeated delays and excess expenses related to nuclear power construction in Europe and North America, the industry is shifting its focus towards completion capabilities over design capabilities.' He added, 'The Korean-style nuclear power execution system is being recognized as a validated model in terms of schedule, quality, and procurement, and there are movements to standardize it.'
Hyundai E&C has successfully completed 22 nuclear power plants, including those in Korea and the Barakah Nuclear Power Plant in the United Arab Emirates (UAE), positioning itself as a core partner for global corporations, as evaluated by Jang.
He said, 'Hyundai E&C is expected to confirm its achievements with small modular reactors (SMRs) alongside Holtec in the second half of this year and with large nuclear power plants alongside Westinghouse between the end of 2025 and 2026,' adding that it will emerge as a corporation that sets the standard for global nuclear power construction.