KEPCO Engineering & Construction한전기술

KEPCO Engineering & Construction is profitable on a trailing basis, but its shares have fallen sharply and its valuation looks stretched against its earnings.

The company, a Korean engineering firm for power plants and industrial facilities, reported trailing revenue of about ₩537B and operating income of about ₩56B for the twelve months to H1 2026. Its share price closed at ₩91,200 on 26 October 2026, well below its 52-week high of ₩198,000, and the data shows free cash flow of about -₩25B on the trailing basis. The data does not include any analyst ratings or forecasts.

What stands out

• Trailing operating margin is 10.4% and net margin is 6.7%, up from 6.8% and 2025 net income of about ₩85B, which was higher than the trailing figure of ₩36B.
• 2025 revenue fell 6.3% to about ₩519B, while 2024 revenue had grown only 1.5%.
• The model's base-case fair value is ₩9,653 per share, far below the current price, while the bear and bull cases are ₩5,685 and ₩16,438; the data gives no basis for weighting these.
• Trailing P/E is 96.9 and P/B is 5.9, compared with peers such as Samsung E&A at 17.7 P/E and Hanyang ENG at 7.3 P/E.
• Foreign ownership fell from 15.4% to 13.2% over the last 60 days, while institutions were net sellers of about ₩27.7B over the past 20 days.
• A news report on 15 October 2026 said 22 employees at the company allegedly filed false moving-expense claims in a 'cash-out' scheme; the company's response is not in the data.

What to watch

• Any follow-up on the alleged expense-claim irregularities and the August 2026 filing on confirmation of embezzlement or breach of trust.
• Shareholder meeting timing and the record-date notice filed on 21 October 2026, along with the outcome of the meeting.
• Upcoming full-year 2026 results and whether trailing free cash flow, which is negative, turns positive.