Hanwha Investment & Securities named Hyundai Engineering & Construction its top pick in the sector, saying "large-scale orders, including nuclear power plants, will continue across the board this year." It maintained a Buy rating and raised the target price to 160,000 won. On the previous trading day, Hyundai Engineering & Construction closed at 128,300 won, leaving 24.7% upside.
Song Yu-rim of Hanwha Investment & Securities said, "Hyundai Engineering & Construction has the most experience building nuclear power plants among domestic builders and successfully carried out the Barakah nuclear power plant in the United Arab Emirates (UAE), the only export case of the Korean-type reactor," adding, "Through a major nuclear collaboration with Westinghouse and a Small Modular Reactor (SMR) business with Holtec, it is securing tangible order potential as the global nuclear market expands."
In particular, the first engineering, procurement and construction (EPC) contract in the global nuclear business is slated for this year, and large project tenders are also expected in non-nuclear areas such as data centers, offshore wind, affiliate projects, mixed-use development and urban renewal. Song said, "As order expansion across the board becomes visible, the foundation is being laid for a quantum jump in operating profit going forward."
According to Hyundai Engineering & Construction's 2026 management plan, this year's new orders target is 33.4 trillion won, with revenue of 27.4 trillion won and operating profit of 800 billion won. The analyst emphasized, "As the nuclear momentum is fully reflected, it is necessary to focus on the strength of order wins rather than short-term valuation burdens."