LS SECURITIES analyzed on the 18th that Korea Electric Power Corporation is emerging as a defensive stock amid ongoing market uncertainty. Therefore, the investment opinion is 'buy (maintain),' and the target price is set at 30,000 won. In the previous transaction, Korea Electric Power Corporation closed at 24,100 won.
According to LS SECURITIES on that day, Korea Electric Power Corporation saw a significant increase in stock price for the first time since the announcement of reciprocal tariffs by the Donald Trump administration in the U.S. on the 2nd (local time). While large representative stocks in industries with a high export ratio faced strong adjustments due to concerns over tariff impacts, Korea Electric Power Corporation, being a domestic stock, played a defensive role.
Seong Jong-hwa, a researcher at LS SECURITIES, noted, "There are no plans to increase public utility fees in the first half of this year, considering the early presidential election phase and the power peak period in the third quarter. Thus, it is highly likely that an increase in electricity rates will occur only once in the fourth quarter, meaning there is no momentum until then. However, it is important to consider that if market uncertainty continues, it has substantial value as an alternative stock."
Korea Electric Power Corporation's consolidated sales for the first quarter of this year are expected to reach 24.8255 trillion won, up 7% compared to the same period last year, while operating profit is projected to be 3.9423 trillion won, a 203% increase. This figure aligns with market expectations.
The researcher said, "The increase in revenue and operating profit due to an average industrial rate increase of 9.7%, continued stabilization of raw material prices, and an expanded share of nuclear power generation contributed to stabilizing core operating costs. Although there was an impact on energy costs in won terms due to the depreciation of the won in the first quarter, the stabilization of energy raw material prices mitigated this, leading to limited effects on profitability."