Amid Interest Rate Fears, Power Infrastructure in Focus… Three Key Stocks in Nuclear Power and Solar

As data centers expand, domestic power demand is soaring, bringing the necessity of nuclear power to the forefront. By 2030, life extensions are being considered for nine nuclear power plants reaching the end of their operational lives. With major groups like SKT, GS, KT, and Naver increasing their AI data center construction targets, power demand is expected to grow even further. Expert Kang Si-wan mentioned that attention on Small Modular Reactors (SMRs) is increasing.

Expert Kang Si-wan stated, "I am currently focusing on SMR nuclear power. And because major groups' AI data center targets, including SKT, GS, KT, Naver, and so on, require so much power," emphasizing the importance of nuclear power to meet surging electricity demand.

The Ministry of Trade, Industry and Energy and related ministries are pushing forward with plans to expand power supply. In particular, they emphasized the need to increase the effective capacity of solar power generation and continuously expand it, in accordance with the basic plan for renewable energy. The goal is 100 GW of solar power by 2030 and 150 GW by 2035. Nuclear power is planned to be adjusted upwards from 28 GW to 32.5 GW, and LNG from 58 GW to 64.7 GW.

Expert Kang Si-wan presented the government's specific target figures, stating, "When the basic plan for renewable energy is reflected, the effective capacity will be increased, and solar power must be continuously expanded. 100 GW by 2030, 150 GW by 2035. Nuclear power will also increase from about 29 to 32.5, LNG from 58 to 64.7, and solar power from 100 GW to 150 GW."

Regarding the government's nuclear power policy direction, there were rumors that KEPCO would support U.S. nuclear power plant construction and consider acquiring a stake in Westinghouse, but the Ministry of Environment and the Ministry of Trade, Industry and Energy officially denied this. However, expert Kang Si-wan still believes it is possible for the policy to proceed in that direction. For the major schedules in the second half, public discourse on new nuclear power plants for the 12th Basic Electricity Plan is scheduled between September and October, which is expected to draw significant attention to related policy changes.

Expert Kang Si-wan remarked, "There was content that the government and KEPCO would help build U.S. nuclear power plants and consider acquiring a stake in Westinghouse. But the Ministry of Environment and the Ministry of Trade, Industry and Energy officially denied it. However, I still think it should go in that direction," expressing hope for potential cooperation despite the government's official denial.

The first stock of interest is Doosan Enerbility, a key company in the nuclear power sector. Expert Kang Si-wan evaluated this stock as a fundamental player in gas turbines and nuclear power, suggesting a 'buy on dip' strategy based on the current price of 83,400 won. Although it has risen to 80,700 won, there appears to be sufficient room for further upside.

Expert Kang Si-wan explained, "Doosan Enerbility might be a bit late to consider, but we need to confirm all the details. Doosan Enerbility already went up to 80,700 won yesterday. Still, it seems it can go up further, and since it is currently at 83,400 won, I recommend you approach it together. You can see it as almost the fundamental stock for gas turbines and nuclear power." He added that a stop-loss price is set at 77,800 won, and action is needed if it falls below this.

The second stock of interest is BH, which is expected to directly benefit from U.S. investment and the SMR roadmap. BH is a beneficiary of both the first U.S. investment project, the Texas LNG combined complex, and the follow-up measures of the nuclear power SMR roadmap, making it a stock involved in both sectors.

Expert Kang Si-wan advised focusing on the September schedule, stating, "BH also has continuous upcoming schedules. It is a direct beneficiary of the first U.S. investment, the Texas LNG combined complex project, and also benefits from the follow-up measures of the nuclear power SMR roadmap, being a stock involved in both. So, we should keep an eye on BH for the September schedule." He suggested that a staggered buying strategy below 65,000 won would be effective.

The last stock of interest is Hyundai Energy Solutions, the leading company in domestic solar module market share. This company holds approximately 30% of the domestic module market share and over 50% in the carbon certification grade market, giving it strong pricing power. In particular, an increase in solar power demand is expected due to the expansion of RE100 PPAs by large corporations, and spillover benefits are also anticipated from U.S. regulations on Chinese solar power.

Expert Kang Si-wan emphasized, "I am looking at Hyundai Energy Solutions in the solar module sector. It holds about 30% of the domestic module market share and over 50% in the carbon certification grade market, giving it pricing power. Solar power demand is expected to increase due to the expansion of RE100 PPAs by large corporations. It will also be a beneficiary of U.S. regulations on China," highly evaluating Hyundai Energy Solutions' growth potential. Changes in domestic and international policies and market conditions are analyzed to have a positive impact.