[Market Focus] Daewoo E&C Hits Record High on Middle East Ceasefire and Nuclear Power Project Hopes

On the morning of April 8, Daewoo Engineering & Construction shares surged on the domestic stock market, reaching an all-time high.

As of 10:05 a.m. that day, Daewoo Engineering & Construction was trading at 22,100 won, up 27.38% from the previous session.

This rally is attributed to strong buying in reconstruction-related theme stocks on the back of a two-week ceasefire agreement between the United States and Iran, as well as securities analysts highlighting Daewoo Engineering & Construction as a key beneficiary of the Team Korea nuclear power project. At the same time, on expectations for reconstruction following the ceasefire news, other reconstruction-related stocks such as Samsung C&T (+9.31%), Jeonjin Construction Robot (+10.69%), GS E&C (+18.75%), and Hyundai Engineering & Construction (+13.79%) also saw sharp gains.

Kim Saeryeon, a researcher at LS Securities, pointed out in a report titled "Daewoo Engineering & Construction – Solidifying Earnings, Building Momentum" released that day, "With Daewoo Engineering & Construction expected to win a contract to build two APR1400 nuclear reactors at Dukovany in the Czech Republic, there is also growing anticipation among major nuclear construction firms for Team Korea's potential order for two reactors at the Ninh Thuan 2 nuclear power plant in Vietnam."

Lee Sangho, a researcher at Kyobo Securities, also recently raised his target price for Daewoo Engineering & Construction to 24,000 won, stating, "The company stands to benefit greatly as a nuclear power plant constructor for Team Korea." He added, "Led by Korea Electric Power Corporation, Team Korea has completed a contract for units 5 and 6 at the Dukovany nuclear power plant in the Czech Republic. The results of additional orders are expected to be announced within the first half of the year." Lee further commented, "We believe the likelihood of Team Korea winning additional nuclear power plant orders is also high. This could deliver momentum similar to the expansion of Middle East plant orders between 2005 and 2008."

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