[THE INVESTOR] Korea Electric Power Corp. has been slow in the second quarter but will rebound as the operation ratio of nuclear power plants recovers, said Meritz Securities on July 25, maintaining a “buy” recommendation and 56,000 won target price. 

Its revenue climbed up 1.7 percent on-year to 13.5 trillion won (US$ billion) but operating profit plunged 68.0 percent to 864.5 billion won, as planned maintenance of nuclear plants in the second quarter burdened it, said analyst Kim Seung-cheol.

From the third quarter earnings will regain as maintenance ends and system marginal price rises, said the analyst. Even if the construction of fifth and sixth generators at Singori has been halted, the utility firm’s profits will be secured without any problems, he emphasized. 

The shift away from nuclear power has already been reflected in its stock price and investors should focus on earnings improvement in the latter half, according to the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)