Daishin Securities Co. said on the 22nd that entry into the overseas nuclear power plant maintenance market will become a future growth engine for KEPCO KPS. It kept a "Buy" rating and a target price of 65,000 won. The previous day's closing price of KEPCO KPS was 52,800 won.
Heo Min-ho, a researcher at Daishin Securities Co., said, "Nuclear maintenance revenue is expected to increase thanks to expanded performance-improvement maintenance for nuclear life extensions," adding, "However, thermal power is expected to decline due to fewer planned preventive maintenance units and the retirement of coal-fired plants, while transmission line maintenance is expected to increase at the same time." He presented next year's operating profit at 192.9 billion won, up 5.8% from this year.
Heo said, "For the contract won this year to replace reactor pressure tubes and improve facilities for Unit 1 of Cernavodă in Romania (485 billion won), preliminary work revenue is expected to begin in the fourth quarter of next year," adding, "The company is expected to expand its entry into the global performance-improvement maintenance market for aging nuclear power plants."
Daishin Securities Co. estimated that KEPCO KPS will post fourth-quarter revenue of 453.5 billion won and operating profit of 61.3 billion won this year. Those would be up 5% and 50%, respectively, from a year earlier.
Heo said, "Despite a decrease in planned preventive maintenance volume for thermal power, the increase in the number of nuclear maintenance units will drive revenue growth," adding, "expense is also expected to decrease due to lower bonuses following a downgrade in this year's management evaluation grade."