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 nuclear power shares, into a frenzy. Experts in the financial investment industry advised investors to focus on beneficiary stocks, noting that the U.S. investment project will increase 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 power stocks also rose in tandem, including Orbitek (22.1%), Seojin Electric & Machinery (19.19%), EnerTok (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 power stocks was driven by expectations surrounding the U.S. investment project. The government reported details of negotiations with the ruling party regarding the U.S. investment deal the previous day, revealing some outlines. Media outlets unanimously reported that the construction of the Encinal gas combined-cycle power plant in Texas is likely to be the first project under the U.S. investment initiative. Additionally, reports indicated that the final agreement document would include plans to build eight nuclear reactors on-site 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 power generation but also across nuclear power, 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 combined-cycle power plant construction project, which is considered likely to be the first project. The Encinal project involves building a total 6.4 GW power plant 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 preemptive orders will proceed focusing 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 consortium formation and role allocation must be closely monitored going forward.
With nuclear reactor construction also underway, there are projections that domestic companies' expansion into the United States will gain momentum. Korea Investment & Securities researcher Jang Nam-hyun said, "Energy is included among the key targets of strategic U.S. investment, and recently the United States decided to provide financial support for expanding large-scale nuclear reactors." He continued, "If U.S. investment and nuclear reactor construction are linked, the role of domestic nuclear power value chains possessing repeated construction experience and core equipment supply capabilities will expand."
However, the government has not yet officially acknowledged the media reports. Consequently, experts advised investors to focus on companies with certain benefits rather than investing indiscriminately across all nuclear power stocks.
Meritz Securities researcher Moon Kyung-won stated, "There is significant variation in media reports on key issues, and the official government stance remains unconfirmed." He added, "It will be necessary to engage in short-term event-driven trading around the 18th when the MOU proceeds or to concentrate on value chains with certain benefits, such as Doosan Enerbility."
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