Kepco Plant Service & Engineering Co., Ltd (051600)

[Business Overview] KEPCO KPS is a specialized company that provides comprehensive services for power plant facility diagnosis and performance improvement, domestic and international power generation facilities, renewable energy EPC, industrial facilities, and transmission and substation facilities. Its main business is maintenance and overhaul (O&M) for the stable operation of power generation facilities, performing commissioning maintenance, routine maintenance, planned preventive maintenance, and renovation projects. Its core business areas are maintenance of nuclear, thermal, hydro, transmission and substation, and renewable energy facilities. As of 2025, the revenue breakdown shows the nuclear/pumped-hydro segment accounting for 40.0% and the thermal segment for 34.2%. Its major clients are Korea Electric Power Corporation (KEPCO) and its subsidiaries, which accounted for 82.5% of total revenue in 2025. Independent power producers, industrial self-generation facilities, and district heating and collective energy suppliers are also key clients. The company operates in global markets, having expanded into over 25 countries. [Core Competitiveness] KEPCO KPS virtually monopolizes the domestic power generation facility maintenance market, based on its unique technical data and know-how accumulated over 50 years. In the power generation facility maintenance sector, it has been recognized for its outstanding quality competitiveness, ranking first for 14 consecutive years in the '2025 Korea Quality Satisfaction Index' and receiving the Presidential Award for 29 consecutive years at the National Quality Innovation Competition. It maximizes power plant efficiency through preventive maintenance and repair of problematic components, contributing to KEPCO's domestic power plant utilization rates being maintained at world-class levels. [Performance Analysis] KEPCO KPS's revenue showed a steady growth trend, increasing from KRW 1,429.1 billion in 2022 to KRW 1,576.5 billion in 2025. Operating income increased from KRW 130.6 billion in 2022 to KRW 209.5 billion in 2024, but it decreased to KRW 140.1 billion in 2025, a year-on-year decline of approximately 33.1%, indicating a deterioration in profitability. Net income also decreased from KRW 172.4 billion in 2024 to KRW 124.3 billion in 2025. For Q1 2026, revenue was recorded at KRW 352.4 billion and operating income at KRW 37.0 billion. [Financial Health] Examining financial health indicators, the debt-to-equity ratio has remained stable, decreasing from 28.48% in 2022 to 26.58% in 2025. The current ratio shows a very high level, increasing from 273.35% in 2022 to 287.43% in 2025, indicating excellent short-term debt repayment capability. ROE improved from 0.00% in 2022 to 12.98% in 2024 but declined to 9.23% in 2025. [Outlook] KEPCO KPS is pursuing sustainable growth, focusing on five new growth businesses: renewable energy, nuclear power plant exports, nuclear specialization, performance improvement, and overseas thermal power. In particular, it is expanding its entry into the overseas nuclear power plant market through a contract for the Czech new nuclear power plant construction project, and plans to enhance maintenance efficiency by developing digital maintenance technologies utilizing AI and big data. The increasing demand for planned preventive maintenance and renovation due to aging power generation facilities, along with overseas market expansion, are expected to be future growth drivers.