April 27, 2024

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[THE INVESTOR] Korea Electric Power Corp. will turn to red this year, said Hana Financial Investment on July 27, lowering the target price to 43,000 won (US$38.28) from 46,000 won.

Boosted by the increase in power sales its revenue this year will rise 2.4 percent from last year to 13.2 trillion won, but will turn to red with 985.7 billion won operating loss. Spending on fuel and purchased power hiked 36.2 percent and 30.5 percent from last year, respectively, due to weak won and commodity price rise as well as decline in base-load generation, said analyst Yoo Jae-seon.

When regulations ease, though, its stock price will be able to rebound, added Yoo maintaining a “buy” recommendation. 

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