Core Insights - The Pulau Indah Power Plant is a significant advancement in Malaysia's energy sector, showcasing collaboration between federal and state levels to achieve energy security and sustainable growth [1][2][3] - The project is part of Malaysia's National Energy Transition Roadmap, emphasizing the shift from coal to cleaner energy sources [2][3] - The plant, with a capacity of 1,200 megawatts, utilizes advanced turbine technology to lower emissions and supports future expansions in solar, hydro, and hydrogen energy [3][5] Project Details - The Pulau Indah Power Plant is a combined-cycle gas turbine facility located in Pulau Indah, owned by a joint venture between Worldwide Holdings Berhad and Korea Electric Power Corporation [5][6] - The plant commenced commercial operations on March 1 under a 21-year Power Purchase Agreement with Tenaga Nasional Berhad, creating over 2,500 job opportunities during its development [5] - The project is situated on a 60-acre reclaimed site and is classified as a High-Impact Project under the First Selangor Plan [6] Future Directions - The Deputy Prime Minister encouraged further exploration of opportunities in hydrogen and floating solar technologies, as well as green power purchase agreements to enhance sustainability [4] - The project is seen as a foundation for developing an energy ecosystem that aligns with global sustainability standards [4]

Group 1 - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2] - Korea Electric Power Corporation (NYSE: KEP) is currently rated as a "Buy," with anticipated triggers for re-rating including an increase in electricity prices and a new nuclear-related joint venture [1]

Group 1 - Two stocks in the utilities sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating overbought conditions [2] - Major overbought stocks identified in the sector include Korea Electric Power Corp and Genie Energy Ltd [3] Group 2 - Korea Electric Power Corp has frozen electricity rates for Q3, resulting in a 20% stock increase over the past five days, with a 52-week high of $12.68 and an RSI value of 82.7 [6] - Genie Energy reported a first-quarter adjusted EPS of 42 cents, up from 33 cents a year ago, with a stock gain of around 30% over the past month and a 52-week high of $28.00, having an RSI value of 91.2 [6]

[FORM 6-K Report of Foreign Private Issuer](index=1&type=section&id=FORM%206-K%20Report%20of%20Foreign%20Private%20Issuer) [Signatures](index=2&type=section&id=Signatures) The report was signed by Joo, Hwa-Sik, Vice President, on June 17, 2025, under the Securities Exchange Act of 1934 - The report was signed by **Joo, Hwa-Sik, Vice President**, on **June 17, 2025**[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) [Independent Auditors' Review Report](index=5&type=section&id=Independent%20Auditors'%20Review%20Report) Auditors reviewed Q1 2025 interim financial statements under K-IFRS 1034, concluding fair presentation without an audit opinion - The condensed consolidated interim financial statements for the three-month period ended March 31, 2025, were reviewed in accordance with **K-IFRS No. 1034, 'Interim Financial Reporting'**[9](index=9&type=chunk)[10](index=10&type=chunk)[13](index=13&type=chunk) - The auditors did not express an audit opinion, as the scope of a review is substantially less than an audit[12](index=12&type=chunk) - Comparative financial statements for March 31, 2024, were reviewed by another auditor, and the consolidated statement of financial position as of December 31, 2024, was audited by another auditor with an unmodified opinion[15](index=15&type=chunk)[16](index=16&type=chunk) [Consolidated Interim Statements of Financial Position](index=7&type=section&id=Consolidated%20Interim%20Statements%20of%20Financial%20Position) Total assets, liabilities, and equity increased as of March 31, 2025, with assets at **W249,913,097 million** and equity at **W43,111,122 million** Consolidated Interim Statements of Financial Position (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (millions of won) | December 31, 2024 (millions of won) | Change (millions of won) | Percentage Change | |:---|:---|:---|:---|:---|\ | **Assets** | | | | | | Total current assets | 30,029,891 | 29,255,205 | 774,686 | 2.65% | | Total non-current assets | 219,883,206 | 217,552,590 | 2,330,616 | 1.07% | | **Total assets** | **249,913,097** | **246,807,795** | **3,105,302** | **1.26%** | | **Liabilities** | | | | | | Total current liabilities | 63,424,570 | 63,968,789 | (544,219) | -0.85% | | Total non-current liabilities | 143,377,405 | 141,476,173 | 1,901,232 | 1.34% | | **Total liabilities** | **206,801,975** | **205,444,962** | **1,357,013** | **0.66%** | | **Equity** | | | | | | Total equity | **43,111,122** | **41,362,833** | **1,748,289** | **4.23%** | - Current financial assets, net, increased significantly from **W3,494,717 million** to **W5,104,546 million** (**46.06% increase**)[19](index=19&type=chunk) - Property, plant and equipment, net, increased from **W182,982,763 million** to **W183,845,454 million** (**0.47% increase**)[19](index=19&type=chunk) - Non-current financial liabilities increased from **W88,352,359 million** to **W89,994,826 million** (**1.86% increase**)[20](index=20&type=chunk) [Consolidated Interim Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Interim%20Statements%20of%20Comprehensive%20Income) Profit for the period surged to **W2,361,708 million** for Q1 2025, driven by higher sales, gross profit, and lower finance expenses, with basic EPS rising to **W3,627** Consolidated Interim Statements of Comprehensive Income (March 31, 2025 vs. March 31, 2024) | Indicator | March 31, 2025 (millions of won) | March 31, 2024 (millions of won) | Change (millions of won) | Percentage Change | |:---|:---|:---|:---|:---|\ | Sales | 24,223,984 | 23,292,743 | 931,241 | 4.00% | | Cost of sales | (19,756,944) | (21,303,187) | 1,546,243 | -7.26% | | Gross profit | 4,467,040 | 1,989,556 | 2,477,484 | 124.53% | | Operating profit | 3,753,607 | 1,299,343 | 2,454,264 | 188.89% | | Finance income | 413,301 | 987,226 | (573,925) | -58.14% | | Finance expenses | (1,231,655) | (2,001,253) | 769,598 | -38.46% | | Profit before income tax | 3,231,874 | 737,785 | 2,494,089 | 338.06% | | Income tax expense | (870,166) | (141,850) | (728,316) | 513.45% | | **Profit for the period** | **2,361,708** | **595,935** | **1,765,773** | **296.30%** | | Total comprehensive income for the period | 2,204,170 | 915,202 | 1,288,968 | 140.84% | | Basic and diluted earnings per share (won) | 3,627 | 875 | 2,752 | 314.51% | - Sales of goods increased by **W958,701 million** (**4.20%**) from **W22,850,748 million** to **W23,809,449 million**[22](index=22&type=chunk) - Cost of sales of goods decreased by **W1,850,310 million** (**-8.79%**) from **W21,045,353 million** to **W19,195,043 million**[22](index=22&type=chunk) [Consolidated Interim Statements of Changes in Equity](index=11&type=section&id=Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity increased from **W41,362,833 million** to **W43,111,122 million** as of March 31, 2025, primarily due to profit for the period Consolidated Interim Statements of Changes in Equity (March 31, 2025 vs. January 1, 2025) | Indicator | January 1, 2025 (millions of won) | March 31, 2025 (millions of won) | Change (millions of won) | Percentage Change | |:---|:---|:---|:---|:---|\ | Equity attributable to owners of the controlling company | 39,915,236 | 41,956,591 | 2,041,355 | 5.11% | | Non-controlling interests | 1,447,597 | 1,154,531 | (293,066) | -20.25% | | **Total equity** | **41,362,833** | **43,111,122** | **1,748,289** | **4.23%** | | Profit for the period attributable to owners of the controlling company | - | 2,328,246 | - | - | | Remeasurement of defined benefit plans, net of tax (attributable to owners) | - | (94,441) | - | - | | Dividends paid (attributable to owners) | - | (136,738) | - | - | | Repayment of hybrid bond (non-controlling interests) | - | (230,000) | - | - | - Profit for the period attributable to owners of the controlling company was **W2,328,246 million** for the three-month period ended March 31, 2025[26](index=26&type=chunk) - Remeasurement of defined benefit plans, net of tax, resulted in a loss of **W94,441

Core Viewpoint - Korea Electric Power Corporation (KEPCO) has filed its annual report for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission, indicating a commitment to transparency and regulatory compliance [1]. Group 1 - The annual report includes audited consolidated financial statements, which are essential for investors to assess the company's financial health [1]. - The report is accessible on KEPCO's official website and the U.S. Securities and Exchange Commission's website, providing easy access for investors [2]. - Investors can request a hard copy of the 2024 Annual Report on Form 20-F free of charge, demonstrating the company's willingness to facilitate investor engagement [2].

Fuel Costs and Pricing - In 2024, fuel costs constituted 27.5% of the company's cost of sales, with the ratio of fuel costs to sales at 24.3%[33] - The company implemented a new cost pass-through tariff system on January 1, 2021, linking incurred costs to tariffs charged to customers[37] - The maximum adjustment for the Fuel Cost Adjusted Charge is limited to Won ±5 per kilowatt-hour from the Base Fuel Cost[38] - The company increased the Usage Charge by Won 11.4 and Won 8.0 per kilowatt-hour in January and May 2023, respectively, to reflect increases in the Base Fuel Cost[43] - Starting from October 24, 2024, the company will increase electricity tariffs on industrial consumers by an average of Won 16.1 per kilowatt-hour, representing an average increase of 9.7%[43] Energy Market and Supply - Approximately 97.2% of the bituminous coal requirements were purchased under long-term contracts in 2024, with the remaining 2.8% from the spot market[33] - The average weekly spot price of Newcastle coal decreased from $106.38 per ton in 2023 to $90.79 per ton in 2024, and further decreased to $70.50 per ton as of March 31, 2025[33] - The average daily spot price of Dubai crude oil decreased from $81.93 per barrel in 2023 to $79.67 per barrel in 2024, and further decreased to $73.38 per barrel as of April 3, 2025[36] Regulatory and Compliance Risks - The company is subject to various risks, including fluctuations in fuel prices and government regulations affecting electricity tariffs[30] - The government has discretion to not adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, which may impact profit margins[40] - The company may face significant compliance costs and operational liabilities due to various environmental regulations and initiatives[60] - The company intends to fully comply with environmental obligations, which may result in increased operating costs and liquidity requirements[61] - The company is exposed to potential claims for unpaid wages under the expanded scope of ordinary wages, which could lead to increased labor costs[119] Financial Performance and Losses - From 2021 to 2023, the company experienced substantial operating and net losses due to rapidly increasing fuel prices[44] - The company experienced net losses from 2021 to 2023 due to rising global energy prices and increased power purchase costs, leading to higher debt issuance[76] - The company’s debt ceiling was increased to five times the sum of share capital and reserves, effective until December 31, 2027, allowing for more debt securities to cover losses and finance capital expenditures[76] Energy Transition and Future Plans - The Eleventh Basic Plan announced in February 2025 aims to increase nuclear power capacity from 24.7 gigawatts in 2023 to 35.2 gigawatts by 2038[52] - Coal power capacity is expected to decrease from 39.2 gigawatts in 2023 to 22.2 gigawatts by 2038, while LNG power capacity is projected to increase from 43.2 gigawatts in 2023 to 69.2 gigawatts by 2038[53] - Renewable energy generation capacity is expected to increase from 30.0 gigawatts in 2023 to 121.9 gigawatts by 2038 as part of the Eleventh Basic Plan[53] - The company plans to establish an Eleventh Long-Term Transmission and Substation Facilities Plan in 2025 to meet increasing demand and achieve carbon neutrality[54] - KEPCO aims to achieve carbon neutrality by 2050 and plans to enhance grid capability for connecting renewable energy units through proactive construction of power facilities[169] Labor and Employment Issues - Approximately 73.5% of the company's employees are members of labor unions, which may pose risks of labor unrest affecting operations[95] - The company is transitioning non-permanent workers to permanent positions, which may increase costs and impact financial conditions[96] Cybersecurity and Operational Risks - The company is subject to increased risks from cybersecurity threats, including potential breaches that could materially impact operations and financial condition[126] - The company carries insurance for its nuclear generation units, but coverage is limited and may not cover all potential losses from serious accidents[115] Market and Economic Influences - The company is significantly dependent on the Korean economy, with most income generated from Korean consumers' demand for electricity, which is influenced by global economic conditions[135] - Political instability in Korea, including the impeachment of President Yoon Suk Yeol, may disrupt the economic landscape and adversely affect business operations[136] - Factors such as inflation, interest rate increases, and geopolitical conflicts could negatively impact the Korean economy and, consequently, the company's financial performance[138] Electricity Generation and Pricing - The price of electricity in Korea is determined by a cost-based pool system, with the system marginal price reflecting the variable cost of generating electricity[193] - The capacity price, which compensates for fixed costs, is determined by factors including reference capacity price and reserve capacity factor, with the current reference capacity price ranging from Won 11.00 to 14.41 per kilowatt-hour[203] - The performance capacity factor was introduced in June 2022 to incentivize operational flexibility of generation units, replacing the previous fuel switching factor[206] Corporate Governance and Ownership - The Government maintains a 51.1% ownership stake in KEPCO, ensuring control over significant corporate matters, including dividend approvals[162] - Foreign investment in the company is subject to a 40% ceiling, with a 3% limit on single investor acquisitions, potentially restricting capital inflow[149][150]

Core Insights - EZCORP is identified as a potential beneficiary of President Trump's tariff uncertainty, particularly due to its focus on providing pawn loans to low-income consumers [1] Company Analysis - EZCORP's business model may benefit from weakening economic growth driven by tariffs, as it caters to a demographic that may require financial assistance during economic downturns [1]

Financial Performance - Total sales for 2024 reached W 93,398,896 million, an increase of 5.4% compared to W 88,219,461 million in 2023[31]. - Operating profit for 2024 was W 8,364,710 million, a significant recovery from an operating loss of W 4,541,648 million in 2023[31]. - Profit for the year in 2024 was W 3,621,968 million, compared to a loss of W 4,716,144 million in 2023, marking a turnaround in financial performance[33]. - Gross profit for 2024 was W 11,434,736 million, a recovery from a gross loss of W 1,480,066 million in 2023[31]. - Finance income increased significantly to W 3,448,177 million in 2024, compared to W 1,425,031 million in 2023, reflecting a growth of 142.2%[31]. - Other comprehensive income for 2024 was W 629,001 million, compared to a loss of W 228,672 million in 2023, indicating a positive shift in comprehensive income[33]. - Basic and diluted earnings per share improved to W 5,439 in 2024 from a loss of W 7,512 in 2023[33]. - The profit for the period ended December 31, 2024, was W3,621,968 million, a significant recovery from a loss of W4,716,144 million in 2023[38]. Assets and Liabilities - Korea Electric Power Corporation's total assets increased to W246,807,795 million in 2024 from W239,714,965 million in 2023, representing a growth of approximately 2.3%[28]. - Total liabilities increased to W 205,444,962 million in 2024 from W 202,450,215 million in 2023, reflecting a rise of 1.5%[29]. - Total current assets slightly decreased to W29,255,205 million in 2024 from W29,536,215 million in 2023, a decline of about 1.0%[28]. - Current financial liabilities increased to W 44,465,866 million in 2024 from W 41,139,726 million in 2023, representing a rise of 5.7%[29]. - The Group's deferred tax assets amounted to W13,436,624 million in 2024, compared to W13,161,802 million in 2023, showing an increase of approximately 2.1%[28]. - The total liabilities decreased to W41,362,833 million as of December 31, 2024, from W37,264,750 million at the beginning of the year[36]. Cash Flow - Cash generated from operating activities increased to W20,962,957 million in 2024, compared to W5,978,734 million in 2023[39]. - The company reported a net cash flow provided by operating activities of W15,876,116 million for 2024, up from W1,522,162 million in 2023[39]. - The company’s cash and cash equivalents decreased to W2,382,979 million as of December 31, 2024, from W4,342,887 million at the beginning of the year[39]. Investments and Equity - The Group's investments in joint ventures increased to W4,581,340 million in 2024 from W3,485,699 million in 2023, representing a growth of approximately 31.5%[28]. - Total equity attributable to owners of the controlling company rose to W 39,915,236 million in 2024, up from W 35,845,043 million in 2023, indicating a growth of 11.6%[29]. - The Group's investments in associates and joint ventures as of December 31, 2024, totaled W 11,286,094 million, compared to W 9,662,588 million in 2023, reflecting a growth of approximately 16.8%[196]. Revenue Recognition and Accounting Policies - The Group recognizes revenue over time for construction contracts using the cost-based input method, which reflects the Group's progress towards completion[54]. - The Group recognizes revenue based on the percentage-of-completion for contracts such as EPC business and O&M[96]. - The Group's accounting policies require the measurement of fair values for both financial and non-financial assets and liabilities, with a control framework established for fair value measurement[50]. - The Group's accounting for business combinations follows the acquisition method, measuring the consideration transferred at fair value[67]. - The Group recognizes revenues from construction and operating services related to service concession arrangements in accordance with KIFRS 1115[178]. Impairment and Provisions - The impairment assessment of property, plant and equipment was identified as a key audit matter due to the significant difference between the Group's market capitalization and the carrying amount of net assets[14]. - Management assessed indications of impairment for the electricity transmission and distribution business as of December 31, 2024, based on the recoverable amount of cash-generating units[15]. - The Group conducts impairment assessments for cash-generating units (CGUs) related to electricity sales, estimating value-in-use based on discounted cash flow forecasts[155]. - Provisions for decommissioning costs of nuclear power plants, reflecting the fair value of estimated costs as a liability[161]. - Provisions for renewable energy generation under the Renewable Portfolio Standard (RPS) are recognized to meet governmental regulations[161]. Segment Information - For the year ended December 31, 2024, total segment revenue was W 93,398,896 million, an increase from W 88,219,461 million in 2023, representing a growth of approximately 5.5%[194]. - The operating profit for the Transmission and Distribution segment was W 3,166,658 million in 2024, compared to a loss of W 6,503,917 million in 2023, indicating a significant recovery[194]. - The Electric Power Generation (Nuclear) segment reported an operating profit of W 1,577,798 million in 2024, up from W 797,309 million in 2023, reflecting a growth of approximately 97.7%[194]. - Revenue from domestic customers for the year ended December 31, 2024, was W 92,107,468 million, up from W 86,985,859 million in 2023, marking an increase of approximately 5.5%[198].

Group 1 - The article presents a bullish view on Korea Electric Power Corporation (KEPC), highlighting its progress in financial improvement and shareholder returns as key drivers for stock price [1] - The research service Asia Value & Moat Stocks focuses on identifying Asia-listed stocks with significant gaps between price and intrinsic value, emphasizing deep value balance sheet bargains and wide moat stocks [1] - The author provides investment ideas specifically for value investors interested in the Hong Kong market, offering monthly updates and watch lists [1]

Company Overview - Korea Electric Power Corporation (KEPCO) is the sole distributor of electricity in South Korea [2] Market Position - KEPCO holds a monopoly position in the South Korean electricity distribution market [2] Financial Performance - The company has faced multiple headwinds from 2021 to 2023, leading to a significant decline in its stock price [2] Strategic Initiatives - KEPCO has implemented strong commitments to cost-cutting measures to improve its financial position [2]