KB Securities evaluated on the 21st that Hyundai E&C will lead to a rise in stock prices as gradual performance improvement becomes visible along with actual orders and construction in the second half of the year. It maintained a 'buy' investment opinion and a target price of 110,000 won. The closing price of Hyundai E&C on the previous trading day was 70,900 won.
Researcher Jang Moon-jun from KB Securities analyzed, "In the first half of the year, expectations for the nuclear power project drove stock prices, while in the second half, gradual performance improvement and the visibility of actual orders and construction in the nuclear sector will drive stock prices." He also named Hyundai E&C as his top pick in the nuclear sector.
Researcher Jang noted, "In the second half of this year, with the selection of sites for small modular reactor (SMR) construction support by the U.S. Department of Energy (DOE), the construction of two Palisade SMR 300 units, and the design, procurement, and construction (EPC) contracts for a large nuclear power plant in Bulgaria, the nuclear sector will move from the realm of mere 'expectations' to the realm of 'reality.'"
He added, "Since U.S. President Donald Trump's signing of the executive order on nuclear power in May, the clock for the nuclear power industry has been speeding up, and there is a clear reason to wait."
KB Securities estimates that Hyundai E&C will record sales of 30 trillion won and an operating profit of 910.4 billion won this year. Sales are expected to decrease by 8.2% compared to last year, and operating profit is projected to turn profitable.
Researcher Jang stated, "While high costs at overseas plant sites are expected to continue for the time being, an improved cost rate for domestic dwellings is anticipated to lead to a better second half compared to the first half."