Korea Electric Power Corporation is strong in early trading on expectations of improved earnings amid hopes for an end to the war between the United States and Iran.
At 9:29 a.m. on the 17th, Korea Electric Power Corporation was trading on the main board at 41,950 won, up 2,150 won (5.40%) from the previous session.
LS Securities raised its target price on Korea Electric Power Corporation to 62,000 won from 50,000 won and maintained a "buy" rating. The analysis said that as the Middle East war enters the endgame, the investment appeal seen before the war could reemerge.
Seong Jong-hwa, an analyst at LS Securities, said, "With the Middle East war entering a cease-fire phase, a recovery of the prewar investment momentum and a normalization of value are expected," and added, "There is a possibility that the stock, which plunged during the war, will recover quickly."
Earlier, the United States and Iran agreed to sign a memorandum of understanding (MOU) for a peace agreement and plan to hold an official signing ceremony in Switzerland on the 19th. The market expects that if a formal end to the war materializes, energy prices will stabilize and Korea Electric Power Corporation's expense burden will ease.
The analyst said, "In the second half, nuclear plants that have completed planned preventive maintenance will return to operation in stages, and commercial operation of Saeul Units 3 and 4 is also scheduled," adding, "Profitability is expected to improve as the share of nuclear power generation expands."