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Photo = Yonhap news |
[Alpha Biz= Paul Lee] NH Investment & Securities stated on the 4th that Korea Electric Power Corporation (KEPCO) is likely to resume efforts to increase electricity rates once political uncertainties subside. The firm maintained its ‘Buy’ rating and set a target price of 30,000 KRW per share.
KEPCO’s stock closed at 21,350 KRW on the previous trading day (February 28).
NH Investment & Securities noted, "While KEPCO’s decision to pay dividends for the first time in four years is a positive development, it will need to raise electricity rates in the long term to compensate for the reduced cash flow caused by dividend payments."
The firm also stated, "The system marginal price (SMP) for January and February was 115 KRW/kWh, lower than previously expected, which will likely result in first-quarter operating profit surpassing consensus at 4.4 trillion KRW. Based on this year's performance, KEPCO’s price-to-earnings ratio (PER) is at 2x and price-to-book ratio (PBR) at 0.3x, making it an attractive investment opportunity."
KEPCO reported an operating profit of 8.35 trillion KRW in 2023, marking its first return to profitability in four years. To enhance shareholder value, the company announced on February 28 that it will pay a limited dividend of 214 KRW per share.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
