1. What Happened?

Kumhwa PSC signed a KRW 58.9 billion contract with Hyundai E&C for the ‘Shin Hanul Units 3 & 4 Main Equipment, Auxiliary Equipment, and HVAC System Installation.’ The contract spans from September 2025 to April 2031, totaling 5 years and 8 months.

2. Why Does It Matter?

This contract, equivalent to 17.31% of Kumhwa PSC’s revenue, is anticipated to play a crucial role in offsetting the downturn in the plant construction sector and securing long-term growth momentum. It also provides valuable experience in nuclear power plant projects, potentially enhancing competitiveness in future bids.

3. What’s the Outlook?

Positive Aspects

  • • Revenue growth and long-term financial stability
  • • Accumulated experience in nuclear power plant projects and potential for future contract wins
  • • Synergy between power plant maintenance and construction divisions

Risk Factors

  • • Potential profit decline due to fluctuations in raw material prices and project delays
  • • Exchange rate and interest rate fluctuation risks during the long contract period
  • • Increased competition in the nuclear power plant construction market

4. What Should Investors Do?

Investors should focus on the company’s fundamentals and growth potential from a long-term perspective, rather than short-term stock price fluctuations. Continuous monitoring of project profitability, new order trends, and the impact of macroeconomic variables is crucial.