Downgrade: Too early to call the bottom

研报英文原文证据摘录

Downgrade: Too early to call the bottom

Macquarie Equity Research Korea Electric Power

Key Risks to Investment Thesis Company Description

• Upside: Progress in Team Korea's participation in US nuclear Korea Electric Power (KEPCO) is a state-owned electricity

projects, potential electricity tariff increases. utility monopoly, with an integrated business model spanning

• Downside: Potential industrial customer exit amid the power generation, transmission, distribution, and sales of

Direct Power Purchase regime (DPP), further increases in electricity. KEPCO purchases electricity from KPX and supplies

commodity prices. it to end-users, generating power through its six wholly owned

subsidiaries.

Figure 1 - KEPCO: Higher oil prices add upward Figure 2 - KEPCO: Historical P/BV band

pressure on input costs

(Won)

(Won tr) 100,000

90 20% 90,000

10% 80,000

0% 70,000 0.80x 60

50 -10% 60,000 0.65x

40 -20% 50,000

30 0.50x

-30% 40,000

-40% 30,000 0.35x 10

20,000

0 -50% 0.20x

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026E 2027E 2028E 10,000 0

2010 2011 2013 2015 2016 2018 2020 2021 2023 2025 Fuel cost Purchased electricity % OPM (RHS)

Source: Bloomberg, Company data, Macquarie Research, May 2026

Source: Company data, Macquarie Research, May 2026

Korea Electric Power (015760 KS) KRW/(bn) unless otherwise noted

Income Statement Dec FY 2025A 2026E 2027E 2028E Q1/26A Q2/26E Balance Sheet 2025A 2026E 2027E 2028E

Revenue 97,429 97,970 100,546 102,512 24,399 22,088 Cash 5,270 7,077 7,441 6,826

Cost of Goods Sold 80,705 84,114 79,813 81,766 19,896 18,906 Receivables 12,519 12,588 12,919 13,172

Gross Profit 16,725 13,856 20,734 20,746 4,503 3,182 Inventories 10,153 10,582 10,041 10,286

EBITDA 27,279 23,672 30,555 30,358 7,263 5,665 Investments 2,975 4,462 6,693 10,040