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JONBUR Research · Initiation

KEPCO Plant Service & Engineering · 051600 · Construction

KEPCO KPS: Margins Below 2023-24 Peak, Shares Near 52-Week Low

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

KEPCO Plant Service & Engineering closed at ₩42,800 on 2026-10-12, down 13.2% in one month and close to its 52-week low of ₩41,500. Filed results show revenue growing slowly and margins well below 2023-24 levels, while the model estimate sits above the share price.

Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a stable, low-leverage business whose profitability has stepped down. Operating margin was 13.5% in 2024 and 8.9% in 2025, and the trailing figure to H1 2026 is 9.1%. Revenue growth has been modest at 1.2% in 2025. The share price has fallen 12.1% over one year and 13.2% over one month, and the reasons are not given in the data, since no news headlines are available. On the other side, the stock trades at a P/E of 14.8, below the 17.9 at the end of 2025, and pays a dividend yield of 3.9%. Investor flow, foreign ownership and short-balance data are not available, so we cannot say who has been trading the shares. The data show a lower valuation and weaker earnings together, and they do not show which one is driving the other.

Business overview

KEPCO Plant Service & Engineering (051600) is listed on KOSPI and classified in the data under Construction. It was founded on 1984-03-27 and listed on 2007-12-14. It has 45.0M listed shares and a market capitalisation of about ₩1.9T. Revenue rose each year from ₩1.38T in 2021 to ₩1.58T in 2025. The CEO named in the data is 김홍연. The data do not describe products, customers or contracts, so we do not comment on them.

Financial analysis

All figures come from filed financial statements (DART). Trailing revenue to H1 2026 was ₩1.62T, operating income ₩147.3B and net income ₩129.8B, giving an operating margin of 9.1% and a net margin of 8.0%. ROE is 9.7%. In 2025 revenue was ₩1.58T, operating income ₩140.1B and net income ₩124.2B, against ₩209.5B and ₩172.4B in 2024. ROE fell from 13.3% in 2024 to 9.3% in 2025. The balance sheet is conservative, with liabilities to equity of 25.1%. Cash is ₩166.9B, and borrowings are not available in the data. Trailing free cash flow is ₩30.0B, much smaller than net income.

Valuation

At ₩42,800 the shares trade at a P/E of 14.8, P/B of 1.4, P/S of 1.2 and EV/EBITDA of 8.4. Enterprise value is ₩1.76T. Year-end 2025 multiples were a P/E of 17.9 and a P/B of 1.7, so current multiples are lower than the end of last year. Earlier year-end multiples are not available. The peers in the data are very mixed, with P/Es of 4.0 to 24.9 and P/Bs of 0.5 to 1.8, so comparison is of limited use. The valuation model, a 5-year discounted cash flow at a 5.4% rate, gives a base case of ₩86,309 per share, a bear case of ₩47,995 and a bull case of ₩166,019. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. Even the bear case is above the current price, and the wide range shows how sensitive the result is to the assumptions.

Catalysts

  • An extraordinary shareholders' meeting was held, with results filed on 2026-10-02.
  • Filings on 2026-10-02 and an amended filing on 2026-10-06 report changes to independent directors.
  • The half-year report for June 2026 was filed on 2026-08-14, after preliminary consolidated earnings on 2026-08-10.
  • Investor relations events were held on 2026-08-05 and 2026-08-25.
  • A response to a rumour or news report was filed on 2026-08-07, though the data do not give its content.

Risks

  • Operating margin has fallen from 13.5% in 2024 to a trailing 9.1%, and the data do not show whether it will recover.
  • Trailing free cash flow of ₩30.0B is well below net income of ₩129.8B, which suggests weaker cash conversion.
  • Revenue growth has slowed to 1.2% in 2025 from 7.3% in 2023.
  • The share price is close to its 52-week low and fell 13.2% in a month, and the data do not explain the move.
  • Investor flow, foreign ownership and short-selling data are not available, which limits the view of market positioning.

Closing view

The filed numbers show a financially sound company with little leverage, slow revenue growth and profit margins that have come down from their 2023-24 level. The share price has fallen with them, and multiples are lower than at the end of 2025. The model estimate is above the market price, but it depends heavily on its assumptions and the range between bear and bull cases is very wide. Governance filings and the earnings trend are the main items visible in the data, while missing flow data and news leave the reason for the recent decline unclear.

Model estimate of fair value

Bear
₩47,995
+19%
Base
₩86,309
+113%
Bull
₩166,019
+310%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 5.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)KEPCO KPS: Margins Below 2023-24 Peak, Shares Near 52-Week Low

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information