KEPCO Plant Service & Engineering (130660) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
KEPCO Plant Service & Engineering is an operations-and-maintenance (O&M) services company that operates and maintains power plants on behalf of others in return for service fees, with labor-intensive work such as electricity and gas meter reading added on top, and where plant-level long-term contracts stably underpin revenue in the ₩390 billion range per year. A contract amended in a May 28 disclosure came to about ₩129.7 billion (32.9% of last year's revenue), and a June 9 contract for the Boryeong area came to about ₩40.6 billion (10.3%), showing the revenue base is being stably renewed, while the May 13 Q1 report confirmed both revenue growth and a profit recovery from last year's trough. What stands out recently is that the stock is strong when contracts renew stably and the margin recovery continues, and on this year's basis it actually sits lower than peers in the same power-infrastructure group, but the operating margin of 1.7% is thin, so if labor costs or contract unit prices wobble, profit swings with them, and there is quarter-to-quarter seasonality.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 7.3% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 18.8% higher than a year earlier.
- ROE is 3.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.3%.
- 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 Freedom Federation 31% (individual)
Controlling bloc incl. related parties 31%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis Reading
KEPCO Plant Service & Engineering is not a company that builds or owns power plants (such as thermal plants) itself, but an operations-and-maintenance (O&M) services company that operates and maintains plants on behalf of others and receives service fees in return. Added to this is labor-intensive work such as electricity and gas meter reading and the management of environmental and fuel facilities. A substantial share of revenue comes from long-term operation and maintenance contracts struck at the plant level; indeed, one contract amended in a May 2026 disclosure came to about ₩129.7 billion, or 32.9% of last year's revenue, and the June contract for the Boryeong area reached about ₩40.6 billion, or 10.3%. With several such large contracts stacked up, the structure stably underpins revenue in the ₩390 billion range per year, and the essence of the business is a high labor-cost share and a thin per-contract margin, but revenue that rarely gets cut off.
The latest close is ₩11,460 and the market capitalization is ₩373.6 billion. The price sits above its 20-day moving average (₩10,656) and below its 60-day moving average (₩12,483). 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 53.0, a neutral level. The one-month change is +1.2%, the three-month change is -44.1%, and the position relative to the 52-week high is -55.3%. Relative strength versus the KOSPI is 16 (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 15% of all stocks. Over the past three months it lagged the index by 30.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's confirmed annual basis, the P/E ratio (how many times one year of profit the share price represents) is 92.05x, the P/B (how many times net assets the share price represents) is 3.92x, ROE (how much is earned in a year on shareholders' equity) is 3.9%, the operating margin is 1.7%, and the debt ratio (debt relative to equity) is 198.1%. That the P/E exceeds 90x, however, is not because the company is expensive but because 2025 operating profit temporarily plunged 59.3%, shrinking the denominator of the division. For a stock at such an earnings inflection, the value reflecting this year's trend is closer to the true picture than last year's number. Indeed, the forward P/E (P/E on this year's basis), reflecting that this year's profit has turned around, is distinctly lower than that of comparison companies KEPCO E&C (47.7x) and POSCO DX (63.8x). In other words, taken in isolation, last year alone looks expensive, but on this year's basis it is closer to the more lowly valued side within the same power-infrastructure group. The 198% debt ratio also looks high on the number alone, but with a current ratio of 174% and an interest coverage ratio of 3.6x, short-term liquidity is unremarkable.
Over five years, revenue rose steadily from ₩321.1 billion in 2021 to ₩394.5 billion in 2025 (a 5.3% annual average), giving a stable top line, and in Q1 2026 revenue continued to grow, rising 18.8% year on year to ₩107.4 billion. On the profit side, operating profit fell to ₩6.6 billion in 2025 for a weak year, but the key point is that this profit is turning around quickly. Q1 2026 operating profit of ₩6.3 billion alone already equals 96% of full-year 2025 operating profit. There is seasonality that makes quarterly profit uneven, so one should not simply multiply a single quarter by four, but the very fact that a single Q1 nearly reached last year's full-year profit shows the earnings base is recovering sharply from last year's trough. With revenue rising double digits as plant operation and maintenance volume holds up, and last year's depressed profit returning to normal levels, the key is that the earnings strength seen on this year's basis is far thicker than in last year's confirmed results.
The focus of the recent disclosure flow is amended disclosures of plant operation and maintenance contracts. A contract amended in the 2026-05-28 disclosure had its amount raised to about ₩129.7 billion (32.9% of last year's revenue), and the June 9 contract for the Boryeong area was set at about ₩40.6 billion (10.3%). Rather than new orders, these are in the nature of re-aligning the amount and term of long-term service contracts already under way, showing the revenue base is being stably maintained and renewed. The May 13 Q1 2026 quarterly report confirmed both revenue growth and a profit recovery, followed by the May 21 disclosure convening a shareholders' meeting and setting a record date. Which quarter these large contract amounts are booked as revenue will shape the trajectory of subsequent results.
The strengths are clear. Essential services such as plant O&M and meter reading stably underpin revenue through long-term contracts, revenue grows steadily, and short-term liquidity is unremarkable. Above all, the profit that bottomed last year is turning around quickly, and on this year's basis the valuation is actually lower than the same power-infrastructure group. Judging it expensive on last year's confirmed P/E in the 90x range alone risks missing this recovery. To be candid about the cautions too: the operating margin of 1.7% is thin, so if labor costs or contract unit prices wobble, profit swings with them, and there is quarterly seasonality that makes it hard to conclude the full year from a single quarter. In sum, this is a structure that is strong when contracts renew stably and the margin recovery continues, and that can weaken if unit-price pressure grows. Still, the current data point toward profit recovering from last year's trough, and in that respect, on this year's basis it is closer to an undervalued spot within the same industry.
🔎 Valuation vs peers Inconclusive
Rather than the base KSIC classification (scientific and technical services), KEPCO-affiliated power-infrastructure names closer to the actual business (power-plant operation, maintenance, and electric-power infrastructure services) were used as the peer set; however, KEPCO E&C (design and engineering) and POSCO DX (IT and automation) differ in business character, so they are for positional reference rather than absolute comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KEPCO E&C | 45.76x | 6.64x | 5.70% |
| POSCO DX | 60.13x | 5.62x | 6.18% |
(a) Position versus peers: on P/E alone it is higher than KEPCO E&C and POSCO DX, but this is not because it is expensive but because the denominator (last year's profit) temporarily shrank, so a simple comparison is meaningless. ROE at 3.9% is lower than peers (9-14%), so capital efficiency is inferior. (b) Premium/discount: the surface P/E looks like a premium, but as this is an earnings inflection phase, a substantive judgment is difficult. (c) Limits of trailing figures and the forward basis: last year's confirmed P/E is a value reflecting a weak year, and going forward one can only gauge it through a seasonality approximation from DART confirmed quarters, yet even that approximation has low reliability because of loss-making quarters. Until a margin recovery is confirmed, rather than concluding cheap or expensive, it is left Inconclusive.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩129.9 billion | ₩18.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩11,460 and the market capitalization is ₩373.6 billion. The price sits above its 20-day moving average (₩10,656) and below its 60-day moving average (₩12,483). 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 53.0, a neutral level. The one-month change is +1.2%, the three-month change is -44.1%, and the position relative to the 52-week high is -55.3%. Relative strength versus the KOSPI is 16 (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 15% of all stocks. Over the past three months it lagged the index by 30.4%. 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 -30.45% / 6M -30.43% / 12M -52.80%
Key metrics Computed vs sector median
Valuation
The P/E of 92.05x is above the sector median (11.98x). The P/B of 3.92x is above the sector median (0.85x).
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.
Profitability & financials
Return on equity (ROE) is 3.7%, below the sector average (5.0%). The operating margin is 1.3%. The debt ratio is 128.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $255.2M | $258.2M | $277.2M | +7.35% ↑ faster |
| Operating profit | $18.3M | $11.3M | $4.6M | -59.27% ↓ slower |
| Net profit | $10.9M | $8.2M | $2.9M | -65.04% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $225.5M | $243.1M | $255.2M | $258.2M | $277.2M |
| Operating profit | $12.3M | $13.1M | $18.3M | $11.3M | $4.6M |
| Net profit | $6.1M | $11.4M | $10.9M | $8.2M | $2.9M |
| Revenue CAGR | 4-yr avg 5.29% | ||||
Revenue rose 7.3% year over year (2023 ₩363.3 billion → 2024 ₩367.5 billion → 2025 ₩394.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 59.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.3%. The two-year revenue CAGR is 4.2%. In the most recent quarter (Q1 2026), revenue was 18.8% 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 3.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-28UpdateAmendment to power operation and maintenance service contract (amount about ₩129.7 billion, 32.9% of last year's revenue)A single contract equal to about a third of annual revenue, a large long-term service deal. It is not a new order but an amendment re-aligning the amount and term of an existing contract, showing the core revenue base is being maintained and renewed. The timing of revenue recognition will shape quarterly results. Source
- 2026-06-09UpdateAmendment to Boryeong-area operation and maintenance service contract (amount about ₩40.6 billion, 10.3% of last year's revenue, term 2022-03 to 2026-08)A typical operation and maintenance contract struck at a specific plant level, showing exactly the business structure in which the company does not own plants but operates and maintains them for a service fee. In the short term, it is a factor confirming the revenue base. Source
- 2026-05-13EarningsQ1 2026 quarterly report - revenue ₩107.4 billion (+18.8%), operating profit ₩6.3 billion (-15.1%)Revenue grew double digits but operating profit fell short of the prior year, so top-line growth and a profit slowdown are confirmed together. As Q1 operating profit is 96% of last year's full-year figure, care is needed in interpreting metrics on last year's basis. Source
- 2026-05-21FilingResolution to convene a shareholders' meeting and setting of the shareholder-register record dateA procedural disclosure for shareholder returns and agenda processing. The content of agenda items such as dividends and articles of incorporation becomes material for gauging the medium-term shareholder-return direction. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual revenue (consolidated) | ₩394.5 billion | ₩394,548,141,840 | Confirmed | link |
| Large operation and maintenance contract size (share of revenue) | approx. ₩129.7 billion = revenue 32.9% | ₩129,716,082,404 / 32.9% | Confirmed | link |
| Q1 2026 operating profit | ₩6.3 billion | ₩6,327,432,878 | Confirmed | link |
| Seasonality-approximated annual operating profit | approx. ₩41.5 billion | — | Unverified | link |
Recent filings Source
- 2026-06-09Single supply/sales contract (amended)
- 2026-05-28Corporate governance report
- 2026-05-28Single supply/sales contract (amended)
- 2026-05-28Single supply/sales contract (amended)
- 2026-05-21Disclosure
- 2026-05-21Shareholders' meeting notice
- 2026-05-13PeriodicQuarterly report
- 2026-04-22Single supply/sales contract (amended)
- 2026-04-15Single supply/sales contract (amended)
- 2026-04-14Single supply/sales contract (amended)
- 2026-04-13Single supply/sales contract (amended)
- 2026-03-30Single supply/sales contract (amended)
📖 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.