KEPCO KPS (051600) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
KEPCO KPS is a power-plant maintenance (O&M) company that inspects, repairs, and replaces parts so that generating units keep running without interruption. As a KEPCO affiliate, it is the only integrated maintenance provider in Korea that services nuclear and pumped-storage (about 38%), thermal (about 36%), and transmission facilities, so the number of generating units it overhauls in a given year drives its results. In April 2026 it published a corporate value-up plan committing to keep its payout ratio at 50% or higher (last year's dividend was ₩1,651 per share, a payout ratio of about 60%), and in May its preliminary Q1 results confirmed a sharp earnings rebound while it also won a maintenance contract for Cernavoda Unit 1 in Romania. What stands out lately is that this is effectively a domestic monopoly in power-plant maintenance, a net-cash 3.7% dividend name whose earnings are rebounding off a trough as the number of nuclear overhaul units rises in 2026; the cautions are that long-term revenue growth is modest at around 3% a year and results swing widely depending on how overhaul units are scheduled across seasons.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Construction & Real Estate” (Construction & Building Materials), a type typically read first through P/B.
Construction and real estate swing sharply with the timing of pre-sales and completions, and downturns bring write-downs and unsold units that jolt the bottom line. Because earnings can be so lumpy, price-to-book (P/B) — the share price against the company's asset value — is the first lens rather than volatile current profit.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 22.4% higher than a year earlier.
- ROE is 10.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.3%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Electric Power Corporation 51% (corporate)
Controlling bloc incl. related parties 51%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
KEPCO KPS is a power-plant maintenance (O&M) company that inspects, repairs, and replaces parts so that generating units keep running smoothly. As an affiliate whose largest shareholder is KEPCO, it is Korea's only integrated maintenance provider covering nuclear and pumped-storage, thermal, and transmission/substation facilities. Thermal maintenance accounts for about 36% of revenue and nuclear and pumped-storage maintenance for about 38%, so these two pillars make up more than half, with transmission and substation work (including HVDC), other domestic work, and overseas maintenance added on top. It earns money through scheduled preventive maintenance (periodic overhauls) performed on each plant on a fixed cycle and through ongoing routine-maintenance contracts, so the number of generating units it maintains in a year drives its results.
The latest close is ₩47,200 and the market capitalization is ₩2.1 trillion. The price sits above its 20-day moving average (₩44,668) and below its 60-day moving average (₩48,322). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 55.0, a neutral level. The one-month change is +3.7%, the three-month change is -21.2%, and the position relative to the 52-week high is -30.1%. Relative strength versus the KOSPI is 20 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 20% of all stocks. Over the past three months it lagged the index by 6.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a trailing basis, the P/E ratio (how many times one year's net profit the share price represents) is 17.10x, which looks somewhat high. But this divides a trough-level profit in which 2025 operating profit fell 33%, so it appears more expensive than it really is. The P/B (how many times net assets the share price represents) is 1.62x. The balance sheet is very solid: an interest-coverage ratio of 46.9x means debt is essentially no burden, and the company is in a net-cash position (about ₩145.6 billion) with more cash than debt. The debt ratio (debt versus equity) reads 127%, but most of that is operating liabilities, so on a net-debt basis it is actually negative. EV/EBIT (enterprise value divided by operating profit, a debt-inclusive counterpart to the P/E) is 13.5x and EV/EBITDA is 9.2x. The FCF yield (the ratio of cash actually earned to market cap) is a steady 3.5%, and ROE (how much it earns in a year on its equity) is 9.2%.
Long-term revenue is modest. Over the past five years revenue grew from ₩1.38 trillion to ₩1.58 trillion, only about 3% a year, reflecting the character of a mature business where maintenance volume does not rise much. 2025 was a weak year: a gap in overhaul-unit scheduling cut operating profit 33% and net profit 28% versus the prior year. That trough is precisely the starting point of the rebound now on view. Q1 2026 revenue was ₩352.4 billion, up 22% year on year, and operating profit surged 375% from ₩7.8 billion to ₩37.0 billion. The reason is clear: the number of nuclear units undergoing scheduled preventive maintenance rose sharply from 5 in Q1 last year to 13 this year. For full-year 2026 as well, the number of nuclear maintenance completions is 7 units higher than the prior year, so nuclear is driving growth. In other words, last year's seemingly high P/E was due to trough earnings, and on a this-year basis, with profit returning to a normal track, the picture is far lighter.
The most consequential event is the corporate value-up plan disclosed in April 2026. The company said it would establish its identity as a high-dividend name maintaining a payout ratio of 50% or higher and would put IR communication on a regular footing. In practice, last year's year-end dividend of ₩1,651 per share and a payout ratio of about 60% back up this policy. In April it also disclosed a single supply contract (a maintenance order). In May it made a fair disclosure of preliminary Q1 2026 results, confirming a sharp earnings rebound. On the business side, overseas nuclear maintenance is the next growth pillar: it won the reactor pressure-tube replacement and facility-improvement work for Cernavoda Unit 1 in Romania, from which preparatory revenue will arise going forward, and it is expanding into overseas markets including the UAE, South Africa, and Uruguay.
This is a name with clear strengths. It has a stable business base as effectively the monopoly provider of domestic power-plant maintenance. It maintains a solid financial structure with net cash and no interest burden. It is a 3.7% dividend name whose payout ratio of 50% or higher the company has formalized. 2026 is a phase in which earnings are firmly rebounding off a trough as the number of nuclear overhaul units rises. There are cautions too. Long-term revenue growth is modest at around 3% a year, so this is not a structural high-growth stock. Results vary widely by quarter and season depending on how overhaul units are scheduled. Overseas nuclear maintenance has large growth potential, but it will take time before it contributes meaningfully to revenue. In short, this is a recovery-and-dividend name whose valuation, which looked expensive because of last year's trough earnings, grows lighter as profit normalizes this year.
🔎 Valuation vs peers Fairly valued
Compared with KEPCO-affiliated power and nuclear-related service companies closest in business character, viewing maintenance, engineering, and utilities together to match the substance of power-plant maintenance (O&M).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KEPCO E&C | 45.76x | 6.64x | 5.70% |
| Korea Electric Power (KEPCO) | 2.70x | 0.46x | 17.31% |
| Korea Gas Corporation | 24.12x | 0.28x | 2.76% |
On last year's confirmed net profit, the P/E of 16.4x looks somewhat high, but this divides a trough profit in which 2025 operating profit fell 33%, so it appears more expensive than it really is. On a 2026 basis, with profit returning to a normal track, the valuation grows considerably lighter (our own estimated forward P/E is about 12.9x). Given that KEPCO E&C, a KEPCO-affiliated nuclear-related service company, trades much higher at a P/E of 48.5x and P/B of 6.6x, KEPCO KPS's multiple, backed by its core maintenance business, net cash, and high dividend, carries relatively less burden. That said, modest long-term growth and wide quarter-to-quarter swings are factors that limit any premium, so rather than calling it undervalued we see it as fairly valued within a recovery phase.
Price history Close · MA20 · MA60
The latest close is ₩47,200 and the market capitalization is ₩2.1 trillion. The price sits above its 20-day moving average (₩44,668) and below its 60-day moving average (₩48,322). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 55.0, a neutral level. The one-month change is +3.7%, the three-month change is -21.2%, and the position relative to the 52-week high is -30.1%. Relative strength versus the KOSPI is 20 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 20% of all stocks. Over the past three months it lagged the index by 6.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -6.42% / 6M -31.67% / 12M -52.99%
Key metrics Computed vs sector median
Valuation
The P/E of 17.10x is above the sector median (9.50x). The P/B of 1.62x is above the sector median (0.58x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.268x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.9%, above the sector average (8.0%). The operating margin is 10.3%. The debt ratio is 31.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.1B | $1.1B | +1.25% ↓ slower |
| Operating profit | $140.1M | $147.2M | $98.4M | -33.13% ↓ slower |
| Net profit | $114.3M | $121.1M | $87.3M | -27.96% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $969.8M | $1.0B | $1.1B | $1.1B | $1.1B |
| Operating profit | $87.1M | $91.7M | $140.1M | $147.2M | $98.4M |
| Net profit | $69.3M | $70.4M | $114.3M | $121.1M | $87.3M |
| Revenue CAGR | 4-yr avg 3.37% | ||||
Revenue rose 1.2% year over year (2023 ₩1.5 trillion → 2024 ₩1.6 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 33.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.4%. The two-year revenue CAGR is 1.4%. In the most recent quarter (Q1 2026), revenue was 22.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.5%, is on the high side.
- ROE of 10.9% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-20FilingCorporate value-up plan disclosure. Presented a shareholder-return policy to establish its identity as a high-dividend name maintaining a payout ratio of 50% or higher and to put IR communication on a regular footing.The company itself sets a medium-term dividend floor. Combined with its net-cash structure, this raises confidence in dividend stability. Source
- 2026-05-11EarningsFair disclosure of preliminary Q1 2026 consolidated results. Revenue of ₩352.4 billion (up 22.4% year on year) and operating profit of ₩37.0 billion (up 374.6%), a sharp earnings rebound.Confirms in official figures the earnings normalization from a higher number of scheduled nuclear preventive-maintenance units. Supports the recovery trajectory off the 2025 trough. Source
- 2026-04-17UpdateDisclosure of a single supply contract (a maintenance order). A contract that continues the order flow of its core power-plant maintenance business.A short-to-medium-term revenue base from the standpoint of securing maintenance volume. Consistent with the trend of rising overhaul-unit counts. Source
- 2026-03-31DividendThe annual general meeting finalized the 2025 year-end dividend. A cash dividend of ₩1,651 per common share (payout ratio of about 60%).Confirms actual execution of the high-dividend policy. The basis for a dividend yield in the high 3% range. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and operating profit | revenue ₩352.4 billion(+22.4%), operating profit ₩37.0 billion(+374.6%) | revenue ₩352.4 billion, operating profit ₩37.0 billion | Confirmed | link |
| Dividend per share (DPS) | ₩1,651 | 1 ₩1,651 | Confirmed | link |
| Estimated 2026 net profit (our own estimate) | approx. ₩158.0 billion | — | Unverified | link |
Recent filings Source
- 2026-06-02Disclosure
- 2026-05-29Corporate governance report
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-05-06EarningsEarnings disclosure
- 2026-04-20Dividend disclosure (amended)
- 2026-04-17Single supply/sales contract (amended)
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.