Hyundai E&C: 2Q OP beat, awaiting 2H nuclear contract progress

研报英文原文证据摘录

Hyundai E&C: 2Q OP beat, awaiting 2H nuclear contract progress

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

31 July 2026

Hyundai E&C Overweight

000720.KS, 000720 KS

2Q OP beat, awaiting 2H nuclear contract progress Price (31 Jul 26):W93,200

Price Target (Dec-27):W170,000

2Q OP beat BBGe/JPMe, led by stronger-than-expected margin improvement in Korea Auto, EV battery, Nuclear and

Housing and Hyundai Engineering. OP is tracking ahead of the W800bn FY Utility

guidance (55% achieved in 1H); new orders were W23tn (68% of the W33tn FY Sonny Lee AC

goal). Nuclear updates (Holtec Palisades, Bulgaria, Fermi America) were largely (82-2) 758 5716

unchanged, but with a shift toward partial awards as PPA (power purchase sonny.lee@jpmorgan.com

agreement) execution and funding constraints delay full EPC timing. Beyond Seri Yoon

nuclear, the 2H pipeline remains robust (datacenters, power plants), supporting a (82-2) 758 5704

gradually rising margin profile. Near-term catalysts: nuclear-related awards in 2H seri.yoon@jpmorgan.com

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

and Korea’s US investment package (Texas LNG power plant), where HDEC Branch

could capture EPC scope. Maintain Overweight and Dec-27 PT of W170,000.

• 2Q OP of W262bn beat both BBGe/JPMe (W229bn/W207bn), supported Quarterly Forecasts (FYE Dec)

by stronger-than-expected margin improvement in the Housing segment and Adj. EPS (W)

Hyundai Engineering (Hyundai Motor Group project and Poland petchem 2025A 2026E 2027E

Q1 1,071 1,543A 1,427

project). OP is tracking ahead of the W800bn full-year guidance (55% Q2 840 953 1,374

achieved in 1H). While management reiterated confidence in meeting the Q3 388 989 2,119

annual OP target, it kept guidance unchanged as a hedge against: 1) potential Q4 1,020 1,134 1,573