Korea Stock Market Insights

Tag: SMR

  • Jeryong Industry (147830) Q2 2025 Earnings Analysis: A Hidden Gem in the Booming Power Industry?

    1. Jeryong Industry’s Q2 2025 Earnings Surprise!

    Jeryong Industry achieved significant growth in Q2 2025, recording revenue of ₩9.7 billion, operating profit of ₩3.1 billion, and net income of ₩3.1 billion, a substantial increase year-over-year. The surge in demand for key products such as HVDC 500kV metal fittings is identified as the main driver of this strong performance.

    2. Solid Fundamentals, Securing Future Growth Engines

    Jeryong Industry boasts excellent financial stability, maintaining a low debt-to-equity ratio of 10.46%. Moreover, the company is actively investing in securing future growth engines, such as HVDC and SMR technology development and the application of eco-friendly resource recycling technology, suggesting high potential for long-term growth.

    3. Favorable Market Environment, Gaining Growth Momentum

    The growth outlook for the power industry is very bright, driven by increasing electricity consumption, expanding investments in advanced industries, data center construction, and the trend toward carbon neutrality. This favorable market environment is expected to further strengthen Jeryong Industry’s growth momentum. The current stable exchange rate and raw material prices are also positive factors.

    4. Action Plan for Investors

    • Continuously monitor H2 2025 earnings and new technology development achievements.
    • Keep an eye on the company’s response strategies to raw material price and exchange rate fluctuations.
    • Consistently evaluate Jeryong Industry’s market position by understanding changes in the competitive landscape of the power equipment market and technology trends.
    Q: What are Jeryong Industry’s main businesses?

    A: Jeryong Industry’s main businesses consist of metal products (82.6%) and synthetic resin products (17.4%), with the high operating profit margin (36.4%) of the metal products division driving overall profitability.

    Q: What were Jeryong Industry’s Q2 2025 earnings?

    A: Jeryong Industry recorded revenue of ₩9.7 billion, operating profit of ₩3.1 billion, and net income of ₩3.1 billion in Q2 2025.

    Q: What is Jeryong Industry’s future investment strategy?

    A: The company is focusing its investments on securing future growth engines, such as HVDC and SMR technology development and the application of eco-friendly resource recycling technology.

  • Korea Electric Power Technology Corporation (KEPCO E&C) Wins $30 Million Contract: Short-Term Boost or Long-Term Growth Driver?

    1. What Happened?

    On July 29, 2025, KEPCO E&C signed a $30 million contract with Korea East-West Power for the design and engineering services of the SinHonam and SinIlsan combined cycle power plant construction project. The contract period extends until March 2031. This represents a substantial 7.27% of KEPCO E&C’s projected revenue for 2025.

    2. Why is it Important?

    This contract is expected to contribute to revenue growth and improved profitability in the short term. Notably, it is anticipated to partially offset the decline in sales experienced in the first quarter. In the long run, it aligns with KEPCO E&C’s strategy to diversify its business portfolio beyond nuclear power, venturing into new energy businesses and combined cycle power plant design. It’s also expected to enhance technological competitiveness.

    3. What’s the Outlook?

    While there is a potential for a short-term stock price increase, sustained growth will depend on improvements in fundamentals. From a long-term perspective, it can contribute to securing a stable revenue base and enhancing technological competitiveness. However, considering the 5-year and 8-month contract duration, managing macroeconomic risks such as exchange rate fluctuations, raw material price changes, and interest rate fluctuations is crucial.

    4. What Should Investors Do?

    Investment decisions should focus on KEPCO E&C’s long-term growth potential rather than short-term stock price fluctuations. A comprehensive investment strategy should be developed, considering factors like SMR project progress, Czech nuclear power plant project development, and the strengthening of competitiveness in new energy businesses.

    What is the scale of this contract?

    It’s a $30 million contract, which equates to 7.27% of KEPCO E&C’s projected 2025 revenue.

    How will this contract impact KEPCO E&C’s stock price?

    It may positively influence the stock price in the short term, but sustained gains are contingent on improvements in fundamentals.

    What precautions should investors take?

    Managing macroeconomic risks is crucial due to the long contract duration. Monitoring the progress of the SMR project and other initiatives is also important.

  • Doosan Enerbility Q2 Earnings: Below Expectations, But Future Growth Drivers Remain Strong

    1. Q2 Earnings: A Story of Contrasts

    Doosan Enerbility reported Q2 revenue of KRW 45.69 trillion, exceeding the previous year’s figures. However, operating profit and net income, at KRW 2.71 trillion and KRW 1.31 trillion respectively, missed market projections. Increased orders for large-scale EPC projects in the Middle East and strong performance by Doosan Bobcat contributed to revenue growth, but were offset by rising raw material prices and unfavorable exchange rate fluctuations.

    2. Analyzing the Earnings Miss

    Beyond raw material prices and exchange rates, rising Baltic Clean Tanker Index, indicating increased sea transportation costs, also contributed to the decline in profitability. Despite Doosan Bobcat’s positive performance, the underperformance of Doosan Enerbility’s core business had a more significant impact on overall results.

    3. Future Growth Drivers: Nuclear, Gas Turbines, and Offshore Wind

    Despite the short-term setback, Doosan Enerbility’s mid-to-long-term growth strategy remains promising. The company’s expansion into nuclear power, gas turbines, and offshore wind power, as well as its entry into the SMR market, are key growth drivers. However, the rising cost of investment capital due to interest rate hikes poses a potential challenge to profitability.

    4. Action Plan for Investors

    While there’s short-term downward pressure on the stock price, investors should consider the company’s long-term growth potential. Careful monitoring of raw material prices, exchange rate volatility, geopolitical risks, and debt-to-equity ratio is crucial for developing a sound investment strategy.

    Why did Doosan Enerbility’s Q2 earnings fall short of expectations?

    Rising raw material prices, exchange rate fluctuations, and increased sea transportation costs were identified as the primary factors. Despite growth in the Doosan Bobcat segment, the underperformance of Doosan Enerbility’s core business impacted the overall results.

    What are Doosan Enerbility’s future growth drivers?

    Expansion into nuclear power, gas turbines, and offshore wind power, along with entry into the SMR market, are considered key growth drivers.

    What should investors keep in mind?

    Investors should be mindful of short-term stock price volatility and monitor raw material prices, exchange rate fluctuations, geopolitical risks, and the debt-to-equity ratio while maintaining a long-term investment perspective.