KB Securities said on the 27th that Hyundai E&C will overcome its weak share performance in the third quarter and return as a "nuclear power stock." The analysis is that, led by a recent major U.S. nuclear power plant construction contract, full-fledged nuclear power contracts or groundbreakings will continue through next year.
Jang Moon-jun, an analyst at KB Securities, said, "As concrete results emerge in nuclear power, Hyundai E&C's character as a nuclear power stock will become more pronounced," adding, "It is time to overcome the sluggish share price since the third quarter and return again as a clear 'nuclear power stock.'"
Earlier, Hyundai E&C said on the 26th that it signed the first-ever domestic contract to build a major U.S. nuclear power plant. Hyundai E&C signed a front-end engineering design (FEED) service contract with U.S. energy developer "Fermi America" to build four large nuclear power plants within a complex energy and artificial intelligence (AI) campus.
Jang said, "This contract with Fermi is still at the front-end engineering design (FEED) stage, but it is significant in that it is a project to build four large nuclear power plants in the U.S. market," adding, "The fact that market expectations were low is a positive. We should focus on the real results that Hyundai E&C will bring going forward."
Jang judged that, starting with this contract, full-fledged nuclear power contracts or groundbreakings will continue through next year. He explained, "The expected pipeline through the end of next year includes the groundbreaking of a Small Modular Reactor (SMR) with Holtec, the start of construction of the Bulgaria nuclear power plant with Westinghouse next year, and conversion to EPC (engineering, procurement, and construction) after completing the FEED contract for the Fermi plant."