Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
KEPCO stock reaches highest in 16 years
By Park Jin-hai
The share price for Korea Electric Power Corporation (KEPCO) hit record high in 16 years to close at 50,900 won on the last trading day of July, said the company on Sunday.
Its share price surpassed the previous record of 50,500 won set in June, 1999.
It is a 77.7 percent rise, since current KEPCO CEO Cho Hwan-eik took office in December, 2012.
Its total market value grew to 32.7 trillion won from 18.4 trillion won in 2012.
Under Cho’s leadership, the once troubled state-run power company, which has been suffering losses for five years in a row since 2008, has been working to improve its financial structure.
The company posted 1.03 trillion won in operating profits last year.
This year, low oil prices helped the company its first quarter performance. Its first quarter operating profit reached 2.24 trillion won, up 82.5 percent from last year, while its net profit more than doubled to post at 1.22 trillion won during the cited period.
The power company has been expected to report as good financial report as its first quarter in the second quarter of the year.
“In the first quarter, its operating profit increase more than 1 trillion won. Under the favorable market condition, in the second quarter gain it is expected to report as much good financial results,” said Kim Sang-ku, an analyst at Kiwoom Securities.
“KEPCO shares tend to have strong performance during the economic downturns. As it can change the portion of local power generation, its dependence on overseas market variance is low,” he added.
The company’s low price earnings ratio (PER) is another factor that is luring investors. Its PER remains at 11, lower than top 20 KOSPI companies’ average of 26, meaning that its share price has been undervalued by the market standards.
Yoon Hee-do, an analyst at Korea Investment & Securities said when the large capital stocks are reporting rather disappointing financial results, KEPCO has been gaining attention from overseas investors.
“The company’s various projects in and outside of the country including the construction of UAE nuclear power plant and micro grid export to Canada are viewed as revenue creators. That is appealing to foreign investors, pushing up its share price as well,” said the analyst said.
Currently, KEPCO has been actively engaged in 36 overseas projects in 22 nations including the Philippines and UAE.