KB Securities evaluated that Hyundai E&C and Doosan Enerbility will demonstrate their presence in all areas of nuclear power, including large nuclear power plants and small modular reactors (SMRs). The target prices are 54,000 won for Hyundai E&C and 34,000 won for Doosan Enerbility. The investment opinion for both corporations is "buy."
Kim Dong-won, head of research at KB Securities, noted, "The successful completion experience of the Barakah nuclear power plant in the United Arab Emirates (UAE) has made power consumers and source technology holding corporations worldwide pay attention to the Korean nuclear supply chain," and added, "A new era of nuclear power is strongly calling for the Korean nuclear supply chain."
Nuclear demand, which had been dampened after the Fukushima nuclear accident in Japan, has recently increased. Simultaneous projects are being promoted globally for large nuclear power plants, SMRs, and more. Europe is revisiting nuclear power to resolve issues stemming from the suspension of natural gas supply due to the war between Russia and Ukraine and the significant decrease in renewable energy generation. The United States is focusing on SMRs as a power source to meet electricity demand, amid the opening of the artificial intelligence (AI) era.
In this situation, the construction capabilities of domestic corporations are a significant advantage. Center head Kim explained, "Nuclear demand comes with strong conditions of set construction deadlines and fixed budgets," adding, "Korea's experience in constructing the UAE nuclear power plant can serve as a strong reference in the current nuclear market."
Each corporation is also preparing for next-generation businesses. Hyundai E&C has partnered with the U.S. company Westinghouse for large nuclear power plants and with the U.S. company Holtec for SMRs. Doosan Enerbility has secured the rights to supply SMR reactor equipment from U.S. companies NuScale, X-energy, and TerraPower.