KEPCO’s Stock Doubles This Year: ‘Record-Breaking Q4 Results Expected’... LIG Nex1 to Begin Cheongung-II Exports to Saudi Arabia [Stocktopia]

[Financial News] On the morning of November 14, here is a summary of major securities firms’ reports.
Korea Electric Power Corporation (KEPCO) is expected to post record-breaking results in the fourth quarter as fuel cost burdens ease and wholesale electricity prices stabilize. LIG Nex1 is projected to see a significant boost in revenue from Cheongung-II exports to Saudi Arabia and the United Arab Emirates (UAE) starting next year.
◆Korea Electric Power Corporation (KEPCO) (015760)― Hana Securities / Jaeseon Yoo, Analyst
- Target Price: 65,000 KRW (up from previous 55,000 KRW)
- Investment Opinion: Buy
Hana Securities evaluated that KEPCO is expected to deliver record-breaking results in the fourth quarter as fuel cost pressures ease and the System Marginal Price (SMP) stabilizes. The target price was raised to 65,000 KRW. Analyst Jaeseon Yoo noted that despite one-off costs reflected in other operating expenses in the third quarter, KEPCO delivered operating results in line with market expectations, demonstrating robust profit-generating capability. Additionally, the SMP remained stable during the summer peak season, and there is potential for further declines in the fourth quarter due to weak international oil prices. Yoo also pointed out that consolidated operating profit and dividend income have both increased, leading to a marked improvement in standalone net profit. Excluding the land sale in 2015, KEPCO is expected to post its highest-ever net profit.※SMP (System Marginal Price)This refers to the price applied when KEPCO purchases electricity produced by power generators. When oil and gas prices fall, the SMP also decreases, reducing KEPCO’s cost burden.
◆LIG Nex1 (079550)― Meritz Securities / Jiho Lee, Analyst
- Target Price: 600,000 KRW
- Investment Opinion: Buy
Meritz Securities expects LIG Nex1 to begin recognizing export revenue from Cheongung-II for Saudi Arabia starting next year. Analyst Jiho Lee forecasts that the export portion of LIG Nex1’s total sales will exceed 20% next year, marking the first stage of improved profitability for the company. Lee explained that while exports to the United States have been delayed since the Trump administration, large-scale domestic defense projects and the localization of electronic warfare equipment remain promising.※Cheongung-II (M-SAM Block-II)This is a Korean medium-range surface-to-air interceptor missile. It can simultaneously counter various aerial threats such as ballistic missiles and aircraft, earning it the nickname 'Korean Patriot.'

sms@fnnews.com Seong Min-seo Reporter