April 25, 2024

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[THE INVESTOR] KEPCO Engineering and Construction will receive more orders as investment in reinforcing safety of nuclear plants increases this year, said Shinhan Financial Investment on Feb. 14.

The securities firm raised the target price to 30,000 won (US$26.08) from 26,000 won and upgraded its recommendation to a “buy” from a “trade buy.”

The company sustained a 32 billion won operating loss in the fourth quarter last year but it was a one-off cost due to a lawsuit, said analyst Heo Min-ho. 

Its earnings this year will improve as revenue will increase, from nuclear plants in particular. The toughened seismic design standards and replacement of dated equipment will push orders for operation and management to 290 billion won, more than double from last year’s 120 billion won, said the analyst. 

KEPCO E&C’s 2017 operating profit will soar 1,208.3 percent to 77.8 billion won and revenue will rise 3.7 percent to 524.9 billion won from the previous year, according to Heo.

By Hwang You-mee (glamazon@heraldcorp.com)