1. What Happened? : $367M Romanian Nuclear Power Plant Contract
KPS, in collaboration with Korea Hydro & Nuclear Power (KHNP), has secured a $367 million contract for the Retubing and Refurbishment of a Romanian nuclear power plant. This is a long-term project spanning 4 years and 10 months.
2. Why is it Important? : Performance Recovery and International Expansion
This contract is expected to be a key driver in revitalizing KPS’s recent performance downturn. The extended contract period of 4 years and 10 months ensures stable revenue, and entry into the Romanian market provides a springboard for future international expansion. This win also serves as a testament to KPS’s technical capabilities in the global market.
3. What’s the Impact? : Positive Outlook, Increased Investment Value
The contract is anticipated to positively impact KPS, including increased and stabilized revenue, strengthened international business capabilities, improved profitability, and enhanced corporate image. Securing a long-term growth engine and a stable revenue base is expected to significantly increase investment value.
4. Investor Action Plan: Buy Recommendation, Risk Management Essential
The investment recommendation is ‘Buy’. However, potential risk factors such as exchange rate fluctuations, overseas business risks, and cost management must be considered. Continuous monitoring of hedging strategies against exchange rate fluctuations, project progress, and potential for additional overseas contracts is crucial.