(Photo = Yonhap news)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] KB Securities raised its target price by 17.4% from 23,000 won to 27,000 won, saying that KEPCO's operating profit this year will turn into a surplus due to improved power sales margins.

"KEPCO's operating profit in the first quarter of this year will be KRW 1.8 trillion, which will switch to a surplus compared to the same period last year," KB Securities said. "This is because the average electricity sales unit price in the first quarter was frozen at the end of last year, while the unit price of power procurement fell by 32% over the same period, increasing the electricity sales margin."

As a result, the company raised its existing estimates by 46.7% and 15.4%, respectively, expecting annual operating profit of 10.851 trillion won and 11.353 trillion won, respectively, this year and next year.

This year's operating profit estimate is a surplus from last year's (4.542 trillion won in operating losses).

 

 

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