News that a 350 billion-dollar (approximately 469 trillion won) investment project in the United States will lead to the construction of gas-fired power plants and nuclear reactors has sent related stocks, including those in the nuclear sector, into a frenzy. Experts in the financial investment industry advised investors to focus on beneficiary stocks, noting that the U.S. investment project will expand opportunities for domestic companies to enter the American market.
As of 11:05 a.m. on the 8th, Doosan Enerbility was trading at 91,800 won, up 3,900 won (4.44%) from the previous day. Other nuclear-related stocks also rose in tandem, including Orbitek (+22.1%), Seo Electric (+19.19%), EnerToc (+15.93%), Korea Electric Power Corporation Technology (+13.49%), Daewoo E&C (+12.17%), KEPCO (+4.35%), Korea Electric Power Corporation KPS (+3.38%), DaeKorea Electric Power Corporation Sun (+1.92%), and BH-I (+1.77%).
The surge in nuclear-related stocks was driven by expectations surrounding the U.S. investment project. The government reported details of negotiations with the ruling party on the U.S. investment deal the previous day, revealing some outlines. Media outlets unanimously reported that the construction of the Encinal gas-fired combined-cycle power plant in Texas is likely to be the first project under this initiative. Additionally, reports indicated that the final agreement document would include plans to build eight nuclear reactors in the United States and that a final signing (MOU) procedure could take place as early as the 18th.
Experts in the financial investment industry projected that through this U.S. investment project, domestic equipment manufacturers will see expanded medium- to long-term order opportunities not only in gas-fired power generation but also across nuclear energy, energy, and infrastructure sectors.
The company drawing the most attention is Doosan Enerbility. This is because it has a high probability of securing orders for the Encinal gas-fired combined-cycle power plant construction project, which is considered likely to be the first project. The Encinal project involves building a power plant with a total capacity of 6.4 GW in Encinal, Texas. Initially, gas turbine generation with a capacity of 1.4 GW will be developed by 2030, followed by the sequential addition of high-efficiency combined-cycle power plants with a capacity of 4.9 GW. However, according to the government, nothing has been finalized yet.
Shinhan Investment Corp researcher Han Seung-hoon stated, "If the goal is to commercially operate 1.4 GW by 2030, it is highly likely that proactive procurement will proceed centered on gas turbines, which have long lead times." He added, "Doosan Enerbility is a manufacturer of 380 MW-class gas turbines and has direct opportunities to secure orders."
The market also anticipates the possibility of participation by KEPCO affiliates. It is expected that KEPCO will secure roles in power plant development and operation, Korea Electric Power Corporation Technology in combined-cycle design and project management, and Korea Electric Power Corporation KPS in long-term maintenance after commercial operation begins. However, since specific methods of business participation have not yet been disclosed, the process of forming a consortium and clarifying role distribution must be closely monitored going forward.
With nuclear reactor construction also underway, there are expectations that domestic companies will gain momentum in entering the U.S. market. Korea Investment & Securities researcher Jang Nam-hyun said, "Energy is included among the key targets of strategic investment in the United States, and recently, the U.S. decided to provide financial support for expanding large-scale nuclear reactors." He added, "If U.S. investment and nuclear reactor construction are linked, the role of domestic nuclear value chains possessing repeated construction experience and core equipment supply capabilities will expand."
However, the government has not yet officially acknowledged the media reports. In response, experts advised investors to focus on companies with clear benefits rather than investing indiscriminately across the entire nuclear sector.
Meritz Securities researcher Moon Kyung-won stated, "There are significant discrepancies between media reports on key issues, and the government's official stance remains unconfirmed." He added, "It is necessary to engage in short-term event-driven trading around the 18th when the MOU signing takes place or to concentrate on value chains with clear benefits, such as Doosan Enerbility."
in STOCK
