KEPCO Macro backdrop turning more unfavorable; downgrade to Underweight

研报英文原文证据摘录

KEPCO Macro backdrop turning more unfavorable; downgrade to Underweight

J P M O R G A N Asia Pacific Equity Research

08 June 2026

KEPCO ▼Underweight

Previous: Neutral

Macro backdrop turning more unfavorable; downgrade 015760.KS, 015760 KS

Price (08 Jun 26):W35,900

to Underweight ▼Price Target (Dec-26):W28,000

Prior (Dec-26):W48,000

The macro backdrop is worsening for KEPCO: the KRW continues to weaken, Korean Autos

ACcommodity estimates are being revised up, and the interest rate hike cycle may Sonny Lee

come sooner as the Bank of Korea (BOK) has shown a more hawkish stance than (82-2) 758 5716

anticipated. A muddled slowdown is the worst-case setup: input costs remain sonny.lee@jpmorgan.com

elevated but not enough to force policy support, while the likelihood of electricity Seri Yoon

tariff hikes looks low as policy rhetoric turns adverse, capping ASP upside and (82-2) 758 5704

earnings recovery. We cut 2026-28E OP by 22-48%, lower our Dec-26 PT to seri.yoon@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

W28,000 based on a mid-cycle P/B multiple of 0.35x (vs previously up-cycle P/B Branch

of 0.54x), and downgrade KEPCO to Underweight.

• Macro backdrop is turning increasingly unfavorable. While KEPCO Key Changes (FYE Dec)

generates ~100% of its revenue in KRW, the currency continues to weaken, Prev Cur Δ

inflating fuel costs on a KRW basis. On the commodity front, Bloomberg Adj. EPS - 26E (W) 8,725 6,095 -30.1%

consensus estimates have been revised up materially across the board with Adj. EPS - 27E (W) 8,928 2,487 -72.1%

Brent, coal, and JKM LNG forecasts now ~14% higher than previous

Quarterly Forecasts (FYE Dec)

assumptions from our last update in April, and our global commodity team

Adj. EPS (W)

suggests limited downside from current levels (link).