CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Korea Electric Power Corporation (KEPCO) reported Q1 2026 revenue of KRW24.4T (+0.8% Y/Y) and operating profit of KRW3.78T (+0.8% Y/Y), which was below consensus, with electricity sales volume declining 0.9% Y/Y to 139.7 TWh. The company reduced cumulative operating loss to KRW34T from KRW47.8T at end-2023, while maintaining stable pricing at KRW170.40/kWh through cost management that saved KRW300B via AI-based systems. We believe our investment thesis remains intact, supported by higher tariffs, cost control, and record nuclear utilization with potential export opportunities. Management flagged 2H 2026 fuel cost pressures from Middle East tensions not fully reflected in the Q1 results. We see potential earnings improvement given record nuclear utilization, though the company remains heavily leveraged with KRW206.4T in debt. In our view, fuel cost fluctuations and political risks from populist pressures on electricity pricing remain key overhangs despite supportive government tariff mechanisms.