(006910) Bosung Powertec (006910) Secures ₩23.5B KEPCO Contract Amid AI Power Boom

In a significant development for the energy sector, Bosung Powertec (006910) is capturing significant market attention. As the demand for electricity skyrockets, fueled by the explosive growth of Artificial Intelligence (AI) and data centers, global investment in power infrastructure has become critical. Bosung Powertec has strategically positioned itself at the forefront of this trend, recently securing a major contract with the Korea Electric Power Corporation (KEPCO) that underscores its pivotal role in building the grid of the future.

This comprehensive analysis will delve into the specifics of this landmark deal, evaluate the company’s robust fundamentals, and explore the broader market dynamics shaping the future of power infrastructure investment. Join us as we unpack the value and long-term potential of Bosung Powertec in an increasingly electrified world.

The Landmark ₩23.5 Billion KEPCO Contract

On September 30, 2025, Bosung Powertec officially announced the signing of a ₩23.5 billion ‘Donghae-Singapyeong Transmission Line Steel Tower Supply Contract’ with KEPCO. This deal is not just another order; it represents a substantial 30.4% of the company’s entire revenue from the first half of 2025. The contract’s execution period is set from September 30, 2025, to February 28, 2026, ensuring a direct and positive impact on the company’s short-term financial performance. The official filing can be viewed in the Official Disclosure (DART).

Underlying Strengths: Why Bosung Powertec?

Robust Financial Health and Core Business Focus

Bosung Powertec’s selection by a major public entity like KEPCO is backed by its strong financial performance and focused business structure. In the first half of 2025, the company showcased impressive profitability. While revenue saw a minor dip, its operating profit margin dramatically improved from 1.78% to a remarkable 15.21%, signaling enhanced operational efficiency. This financial stability is a key factor for securing large-scale public contracts.

• •Dominant Market Position: The company’s core business is power equipment, with the transmission line steel tower segment accounting for a commanding 77.62% of its total revenue.
• •Stable Financials: As of H1 2025, its debt-to-equity ratio stood at a manageable 32.21%, indicating a low reliance on debt and a healthy balance sheet.

Tailwinds from the AI Power Demand Surge

The global economic landscape is being reshaped by AI, and its thirst for energy is insatiable. The proliferation of data centers for training and running AI models is creating unprecedented electricity demand. According to reports from the International Energy Agency, data center electricity consumption is projected to double by 2026. This requires a massive reinforcement of national power grids, directly benefiting companies like Bosung Powertec that provide the essential hardware for transmission and distribution networks.

This KEPCO contract is more than a financial boost; it’s a market validation of Bosung Powertec’s critical role in powering the AI revolution. It solidifies their position as a key supplier for essential power infrastructure upgrades.

Investment Outlook: Stability Meets Growth Momentum

The contract with KEPCO provides Bosung Powertec with a powerful combination of guaranteed revenue and enhanced credibility. This single deal de-risks a significant portion of its near-term revenue forecast and opens doors for future opportunities, both domestically and internationally.

Key Positive Factors for Investors

• •Revenue Visibility: The ₩23.5 billion order provides strong, predictable revenue streams for H2 2025 and H1 2026.
• •Strengthened Market Leadership: Securing a large-scale project with a national utility reaffirms its technological and competitive edge in the steel tower business.
• •Enhanced Stability & Credibility: A contract with a state-owned entity like KEPCO significantly enhances business stability and brand reputation.

Potential Risks to Monitor

While the outlook is overwhelmingly positive, prudent investors should remain aware of potential challenges.

• •Execution Risk: Large projects require meticulous management of timelines, supply chains (e.g., steel prices), and labor to maintain profitability.
• •Order Pipeline: Sustained growth depends on continuously securing new orders beyond this flagship contract.

In conclusion, this major KEPCO contract serves as a powerful catalyst for Bosung Powertec. It aligns the company perfectly with the macro trend of power infrastructure investment driven by the AI era. For investors with a long-term perspective, Bosung Powertec presents a compelling case. To explore similar opportunities, you can read our analysis of top grid modernization stocks to watch.

Frequently Asked Questions (FAQ)

What are the details of the Bosung Powertec-KEPCO deal?

Bosung Powertec has secured a ₩23.5 billion contract to supply transmission line steel towers for the Donghae-Singapyeong project with KEPCO. This significant deal represents over 30% of its H1 2025 revenue.

How does the rise of AI benefit Bosung Powertec?

The massive electricity consumption of AI and data centers necessitates a stronger, more expansive power grid. Bosung Powertec manufactures the critical steel towers required for these high-voltage transmission lines, placing it in a prime position to benefit from increased power infrastructure investment.

Is Bosung Powertec a financially stable company?

Yes. In the first half of 2025, the company demonstrated a significantly improved operating profit margin of 15.21% and maintains a healthy, low debt-to-equity ratio of 32.21%, indicating strong financial and operational health.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The responsibility for investment decisions lies solely with the individual investor.