Woori Technology is smoothly proceeding with a supply contract for nuclear power plant equipment improvement materials signed with Korea Hydro & Nuclear Power (KHNP). In this process, the company's nuclear instrumentation and control technology capabilities and its potential for expansion into the Small Modular Reactor (SMR) sector are attracting market attention. However, since the recent stock price movement aligns with overall supply and demand changes in the nuclear power industry, it is necessary to separately evaluate the actual contract execution performance and the possibility of new orders.

According to a report by Seoul Economy citing electronic disclosure data, Woori Technology will supply materials for improving the electronic cards of the Data Acquisition System (DAS) at the Hanul Unit 1 Nuclear Power Plant to KHNP. The corrected confirmed contract amount is 9.38704 billion won, accounting for 10.77% of the consolidated revenue for 2025. The contract period spans from May 18, 2026, to January 13, 2028. According to the disclosure, the supply method is in-house production, and the contract amount excludes value-added tax.

This contract differs in nature from new nuclear power plant construction. It is a project to improve the performance of electronic cards used in the data acquisition system of an currently operating power plant, which holds significance in meeting the maintenance, repair, and equipment improvement demand that continuously arises during the long-term operation of nuclear power plants. This is why the nuclear power industry must be evaluated not only in terms of new construction but also including the equipment replacement and performance maintenance market.

Possession of Nuclear Instrumentation and Control Localization Experience

According to the company profile posted on Incruit, Woori Technology is a firm with experience in localizing nuclear instrumentation and control systems. The company stated that it has pursued business with the goal of achieving technological self-reliance in advanced monitoring and control fields, and that it competes with global companies such as ABB, Mitsubishi, and Toshiba in the distributed control system market. The same source also noted that the company has secured core foundational technologies for control systems, including high-performance hardware design, real-time operating systems, network applications, and database processing.

However, since these details are part of the company's own technological introduction, specific market share and competitive advantages must be judged comprehensively alongside actual order records.

Business Diversification: Defense, Offshore Wind, and Smart Bio

According to Enterprise Monitor, Woori Technology is expanding its business areas beyond nuclear instrumentation and control into the defense industry, offshore wind power, and smart bio sectors. Consolidated subsidiaries include Woori DS, which operates in the defense industry; Aphae Offshore Wind Power Plant, related to offshore wind power; and Woori Smart Bio, which handles the smart farm business. However, based solely on currently available data, it is difficult to specifically compare the proportion each business contributes to total revenue and operating profit. At this stage, it is appropriate to categorize nuclear instrumentation and control as the core business, and defense, offshore wind power, and smart farms as axes for business diversification.

SMR Technology: Test Design Phase

SMR-related projects are also a major reason for market interest. According to public data, Woori Technology has been introduced as having carried out the design of a test distributed control system cabinet and the development of control logic applicable to small modular reactors. However, test design and control logic development do not immediately lead to commercial nuclear power plant delivery or revenue. It must be separately verified whether these will progress to participation in national projects, technology verification, and actual orders and supply contracts.

Enterprise Monitor also lists the selection through a competitive bid for a multi-purpose reactor distributed control system supply contract and a fixed-price contract for the Aphae Offshore Wind Power Plant in December 2025. However, the scale of the contracts and the schedule for reflecting future performance need to be confirmed through individual disclosures and company announcements.

Possibility of Equity Dilution Due to Convertible Bond Conversion

Changes in the number of issued shares are also subject to review. According to Enterprise Monitor, the number of Woori Technology's issued shares increased as convertible bonds were converted into shares multiple times in March and May 2026. The conversion of convertible bonds into shares has the effect of reducing the burden of cash repayment, but it can act as a diluting factor for the equity value of existing shareholders.

Key Factors to Confirm Going Forward

Rather than evaluating Woori Technology solely as a nuclear power theme stock, the following factors should be comprehensively examined. First, whether the ongoing contract with KHNP is executed without delay and the possibility of follow-up contracts; second, actual revenue changes in the nuclear instrumentation and control sector; and third, the commercialization progress of SMR-related research and development.

Key monitoring points to watch going forward include whether additional supply contracts with KHNP occur, whether existing nuclear equipment improvement demand translates into repeat orders, and whether SMR technology development enters the actual ordering phase. In addition, whether the revenue contribution of non-nuclear businesses such as defense and offshore wind power is specifically confirmed will serve as a criterion for judging changes in the business structure.

[※ This article was written based on corporate disclosures, public corporate information, and data from Seoul Economy, Enterprise Monitor, and Incruit, and does not recommend the purchase or sale of any specific stock. Contract execution and the performance of new businesses may vary depending on the ordering schedule, technology verification, and market environment. Investment decisions and responsibilities lie with the investor. This article was written with AI assistance.]