[Featured Stock] Daewoo E&C Soars 27% on Hopes of Increased Nuclear Power Plant Orders

Smashing Its 52-Week High

Daewoo Engineering & Construction is surging on February 10, hitting a new 52-week high in early trading on expectations of increased nuclear power plant orders.

As of 10:03 a.m. on the same day, Daewoo Engineering & Construction was trading at 7,360 won on the Korea Exchange, up 27.56% from the previous session. The share price at one point climbed to 7,380 won, renewing its 52-week high.

This rally is interpreted as being driven by investor expectations for nuclear power plant orders this year. Lee Seonil, an analyst at BNK Investment & Securities, said of Daewoo Engineering & Construction, "Its overseas order pipeline has become more diversified and richer, and what particularly stands out is the nuclear power plant business," adding, "For the Czech nuclear power plant project, the order contract is expected to be signed by the first half of this year at the latest, and in the United States and Vietnam, the company is pursuing large-scale nuclear power plant projects with the goal of winning orders in 2027." He then raised his target price by 48.9%, from 4,700 won to 7,000 won.

Kim Giryong, an analyst at Mirae Asset Securities, also maintained his "buy" investment rating and his view of the stock as a second-preferred pick within the sector, while lifting his target price to 7,900 won. Kim said, "The government's recent proposal to export Korean-style nuclear power plants, as well as the potential restructuring of the dual nuclear export framework divided between Korea Electric Power Corporation and Korea Hydro & Nuclear Power, are factors that can be interpreted as supporting expectations for Team Korea's expanded participation in overseas nuclear power projects." He went on to say, "With Korea Hydro & Nuclear Power having signed the engineering and procurement contract for Units 5 and 6 of the Dukovany nuclear power plant in the Czech Republic, the construction contract with the company is still pending, and this is expected to become the first event that supports the logic of nuclear power plant momentum, along with the first achievement in overseas nuclear power plant orders."

This content was produced with the assistance of AI translation services.