KEP - Korea Electric Power: Look Beyond Weak Q1 Earnings

• Korea Electric Power's 1Q 2021 earnings decreased significantly on a QoQ basis and fell short of market expectations, but the share price reaction post-results announcement was relatively muted.
• There is uncertainty over the timing of Korea Electric Power's future tariff hikes incorporating the impact of higher fuel expenses, which could result in the company being loss-making in 2021.
• Korea Electric Power is valued by the market at a trailing P/B multiple of 0.22 times, which is at a severe discount compared with its historical trading averages.

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